USD's limited upside potential should support oil prices

China reported today that real estate prices in major cities in August rose again for the most part (sharply in some cases). In addition, the Chinese stock markets appear to be stabilizing. 

"The impact of the interest rate decision taken by the US Fed on sentiment among oil investors should not be underestimated either, nor should the way international financial markets and foreign exchange markets have reacted to it", says Commerzbank. 

The fact that the US Fed has expressed explicit concern about a strong US dollar should limit the greenback's upside potential. A weaker US dollar is frequently accompanied by a rising oil price.