Oil prices climbed on Tuesday, with investors regaining waiting the U.S. Federal Reserve to raise interest rate.

Brent crude futures gained 60 cents, or 0.7%, to $81.47 a barrel at 0740 GMT, after dropping 1% in the previous session.

U.S. West Texas Intermediate (WTI) crude futures rose 68 cents, or 0.9%, to $78.91 a barrel, after falling 0.8% on Monday.

A weaker U.S. dollar helped support oil prices on Tuesday, as it makes oil cheaper for those holding other currencies.

A U.S. Senate committee holds hearings this week for Federal Reserve Chair Jerome Powell and vice chair nominee Lael Brainard that could provide new details about the U.S. central bank’s plans to tighten monetary policy.

Fed To Boost Government Securities

Some analysts warned that the Fed might want to withdraw long-existing leverage for investors, not only reducing QE, that is the quantitative easing, but increasing QT (quantitative tightening).

The essence of the former is a large-scale asset purchase program aimed to decrease interest rates. And most importantly, to shrink the central bank’s, Fed’s balance sheet.

An example of quantitative tightening would be the normalisation of monetary policy, that is return to the higher interest rate to increase cost of the investment loans.

Such a move will increase the attractiveness of the government-issued securities, causing major changes in the stock markets, including capital outflow from the highly inflated real estate market chips and unrealistically priced BigTech’s assets.