Crude oil (WTI) is up by 1.84% to $60.84 per barrel and Brent crude is gaining by 2.34% to $66.43 per barrel, according to the CNBC.com index.
The price of the commodity jumped on a weak dollar and as OPEC slightly upped its world oil demand growth forecast, Reuters reports.
The dollar is down by 0.53% this afternoon, according to the Wall Street Journal dollar index. When the dollar declines commodities dominated by the greenback tend to rise.
Additionally, OPEC made a slight adjustment to its oil demand growth forecast, raising it to 1.18 million barrels per day from its previous 1.17 million barrels per day estimate.
"The market is really torn between wanting to be on the bullish side when you have a weaker dollar and geopolitical situations like today, and staying in accordance with fundamentals, when there's already a deluge of West African crude barrels out there without buyers," Andrew Lipow, president of Lipow Oil Associates told Reuters.
Airstrikes in Yemen led by Saudi Arabia and aimed at Iran-allied Houthis hit a rocket base in Sanna, the capital of Yemen, Reuters noted, adding that the conflict has caused concerns regarding oil supply routes. Yemen is a marginal oil producer but its proximity to shipping lanes is what's causing worry.