• Oil price extends gains after some small profit taking during the Asian trading hours. 
• Traders sent crude prices up near 3% on Monday even as the OPEC report cut the demand outlook. 
• The US Dollar Index trades at the pivotal 103.18 level after being glued to it since last week. 

Oil continues is winning streak for a fifth consecutive trading session after prices jumped substantially on Monday despite the bearish demand outlook from OPEC. The International Energy Agency (IEA) is following that narrative, pointing to the risk of a substantial surplus while OPEC is set to let loose of its production cuts. Still, geopolitical tensions over an immediate attack from Iran to Israel keep prices supported, and traders seem to be betting on OPEC deepening their production cuts to further support the black gold. 

The US Dollar Index (DXY), which tracks the performance of the US Dollar against six major currencies, is getting torn between two major forces this Tuesday on the quote board. On the one hand, the much battered carry trades from last week are making a comeback against the US Dollar. On the other side, the Greenback itself is outpacing the Japanese Yen (JPY). This results in a near standstill in the DXY US Dollar Index chart ahead of Tuesday’s US Producer Price Index (PPI) numbers and Wednesday’s Consumer Price Index (CPI) release.