Oil price rises by 2% to reflect mood of traders

OIL reversed direction for the fourth straight trading day on Tuesday and climbed about 2%, as traders faced uncertainty about the direction of the economy and a weaker dollar.

Crude oil is used to produce petrol and other fuels, and it’s also a major investment commodity. Prices can swing with the collective mood on Wall Street. Recently benchmark oil has fluctuated between $95 and $99 a barrel as investors gauge how Europe deals with Greece’s debt crisis and the debate goes on in Washington over spending and the US debt ceiling.

“Every day, we hear more about what governments are doing to get their sovereign debt under control,” independent analyst Andrew Lipow said. “But you don’t see results, and that leads some people to think we’re headed in the wrong direction.”