U.S. dollar movements and economic signals from China helped push crude oil prices above the recent floor in early trading Tuesday.
The U.S. dollar continued a steady drift lower when weighed against other major currencies, dropping about 3 percent since March 14 when compared to the euro.
A research note last week from ING said the strength of the U.S. dollar was behind recent crude oil price movements. The investment bank said it expects the price for West Texas Intermediate to reach $65 per barrel during the second quarter, though investors "remain wary of the dollar freight train."
WTI continued its positive trajectory early in the trading day Tuesday, gaining about 40 cents to $47.88 per barrel. That's up about 10 percent from March 17, when WTI was trading around its six-year low.
Crude oil prices remain suppressed because markets favor the supply side. U.S. crude oil inventories are at historic highs, while economic momentum stagnates worldwide.
For China, the Purchasing Managers Index, a measure of the vitality in the manufacturing sector, fell to an 11-month low in March. Qu Hongbin, an economist with HSBC, said Chinese policymakers are expected to enact measure to facilitate future growth.
The status of multilateral nuclear talks with Iran is weighing on crude oil prices. Officials in Tehran said this week Iran's presence on the international oil stage would be felt if a breakthrough is reached at the negotiating table in Switzerland.
Iran is limited in terms of how much oil it can export under the current sanctions regime.
The price for Brent, the global oil benchmark, drifted lower early in the Tuesday session, off about 30 cents from the previous day to around $55.60 per barrel.
