Oil advances for third day on record US exports weaker dollar

Oil rose for a third day after the US reported record exports of crude and fuel and a softer dollar made commodities more attractive.

West Texas Intermediate climbed toward $88 a barrel after gaining almost 4 percent over the prior two sessions. Total US petroleum exports hit 11.4 million barrels a day last week, government data showed. The surge came with domestic fuel inventories at historic seasonal lows, highlighting a tightening supply outlook.

The weaker dollar also helped buoy crude. A Bloomberg gauge of the greenback -- which hit a record last month -- has dropped to a three-week low, making raw materials priced in the US currency cheaper for overseas buyers.

After racking up four consecutive monthly losses as concerns about a global slowdown gained traction and central banks raised interest rates, crude has rebounded in October after the Organization of Petroleum Exporting Countries and its allies announced a major output cut. Investors have also been gauging the likely impact of plans by the European Union and US to punish Moscow further for its invasion of Ukraine, including a proposal to cap prices.