Oil reaches 5-week highs ahead of inventory data

Oil prices extended their rally into a fourth consecutive day on Tuesday, with WTI hitting a 5-week high, with a weakening US dollar underpinning the commodity and despite hopes of an agreement among oil producers to freeze output started to fade away.

West Texas Intermediate crude for September gained 1.6%, to $46.47 a barrel on the New York Mercantile Exchange.

WTI peaked at $46.60 a barrel and has gained more than 10%over the last three sessions.

Investors will now be watching crude oil inventory data. The American Petroleum Institute (API) is due to release its weekly report later on the session, while official data from the Energy Information Administration will be released Wednesday.