LONDON (MarketWatch) -- Oil futures reversed losses in electronic action on Tuesday as the dollar dropped against rivals.
Crude-oil futures, after trading lower during the Asian session, rose $1.27 to $71.89 a barrel in electronic action.
Crude rose as high as $72.20 and fell as low as $69.90 in volatile action.
After Monday's gains, the dollar reversed itself on Tuesday, with the dollar falling 1.7% against the Japanese yen.
Crude oil has been under pressure of late due to two major reasons: the rally in the U.S. dollar and bearish supply-and-demand fundamentals, said Darin Newsom, senior analyst at DTN.
Analysts at MF Global were in the dollar bear camp, which could help commodities. But they said in a research note that "one could make the case that crude prices have already worked substantially higher and have more than discounted the improvement in the macro readings."
The contract had closed down $1.42 at $70.62 a barrel on the New York Mercantile Exchange Monday.
