Crude oil advanced on Wednesday trading boosted by the rise in stocks and drop in the dollar.
Oil for September delivery rose to trade around $99.60 a barrel after recording a high of $99.69 and a low of $98.76.
The black gold benefited from the rise in Asian shares which ignored the U.S. debt ceiling worries on upbeat earnings by companies.
Still, there are some concerns on markets that U.S. policy makers may not reach an agreement regarding the raise on debt limit before an August 2 deadline.
There is a split between Republicans and Democrats which is causing indecision. President Obama warned that this may damage the economy, stating that if the ceiling is not increased before August 2 “deep economic crisis” will face the economy.
Meanwhile, the main highlight is on the U.S. as a downgrade in credit rating and/or default may be an outcome of further delay.
The U.S. dollar was pushed down against a basket of major currencies as seen by the dollar index which fell to 73.55 compared with the day's opening level of 74.10.
In fact, the drop in dollar gave an impetus to commodities where gold is traded near yesterday's record high of $1623.00 an ounce.
Tomorrow, the EIA report is predicted to show that U.S. crude inventories slipped 1.75 million barrels from 351.7 million last week.