Oil settles up 1% at 2-week high on worries about tight supply | Reuters

Oil settles up 1% at 2-week high on worries about tight supply | Reuters

Oil prices rose about 1%, with global benchmark Brent settling at a two-week high in volatile trade on Tuesday as traders worried about tight supplies and a weaker dollar.

Brent futures rose $1.08, or 1.0%, to settle at $107.35 a barrel. U.S. West Texas Intermediate (WTI) crude rose $1.62, or 1.6%, to settle at $104.22.

Brent posted its highest close since July 4 and WTI its highest since July 8. At one point during the volatile session, both benchmarks were down around $2 a barrel.

"Crude oil has staged an incredible turnaround today," said Robert Yawger, executive director of energy futures at Mizuho.

"There was no big red bullish headline to greenlight the rally, but the combination of beaten down open interest and low trade volume will often encourage wild price swings," Yawger said.