NEW YORK, July 19 Reuters Oil prices rose about 1, with global benchmark Brent settling at a twoweek 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.

The U.S. dollar

Oil prices have whipsawed, supported by supply fears due to Western sanctions on Russia, but pressured by global central bank efforts to tame inflation which stoked fears that a potential recession could cut energy demand.

On Friday, open interest in New York Mercantile Exchange futures fell to the lowest since September 2015 as investors cut risky assets like commodities, worried that the Federal Reserve will keep raising U.S. interest rates.

The U.S.Canada Keystone pipeline was operating at reduced capacity on Monday after a pump station was shut.

Libya39;s new National Oil Corp NOC chief Farhat Bengdara rejected challenges to his appointment and…