Oil prices rose Wednesday as the depreciation of the U.S. dollar drove investors to oil futures despite new economic worries and expectations that U.S. crude supplies were continuing to build.
News that consumer confidence and home prices in the United States were slumping prompted the greenback's decline against major currencies Tuesday, in turn fueling oil prices.
"U.S. economic woes give mixed signals for oil ... all these poor economic data should affect demand in the U.S. negatively and the weaker supply demand fundamentals should pull down prices," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.
But "the weak U.S. dollar continues to prop up oil prices due to financial investors engaging in this inflation play," Shum said.
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