Crude Oil Ends Higher After Iran Nuclear Talks Extended

(RTTNews) - U.S. crude oil ended a four-day loss to end higher on Tuesday, ahead of the official weekly crude stockpile report, even as talks between Iran and the western powers was extended by a week.

The deadline for a final agreement on Iran's nuclear program was due today, but was extended by a week to July 7. An agreement could have seen sanctions on Tehran withdrawn, enabling a massive flow of Iranian oil into the global markets. This could create a supply glut scenario and possibly bringing oil prices down drastically.

Investors also mulled over the implications of a Greek exit from the eurozone, even as Athens made a last minute request for a two-year bailout and debt restructuring.

Greeks are digging in their heels, signaling they will no longer accept terms of a rescue package from a few years back. It could mean they will exit the eurozone, raising fears of an even wider crisis in Europe.

However, speculations were rife that Greece and its creditors could still agree on the modalities of the bailout aid badly needed by Athens, amid last minute efforts to revive talks between the two sides.

The U.S. Energy Information Administration is set to release its weekly oil report on Wednesday, while the American Petroleum Institute's report is due later today.

Light Sweet Crude Oil futures for August delivery, the most actively traded contract, jumped $1.14 or 2.0 percent, to settle at $59.47 a barrel on the New York Mercantile Exchange Tuesday.

Crude prices for August delivery scaled a high of $59.69 a barrel intraday and a low of $57.94.

On Monday, crude oil prices plunged $1.30, or 2.2 percent, to settle at $58.33 a barrel, amid worries of a Greek default on its sovereign debt as investors perceived little or no hope for an agreement between Athens and its creditors.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 95.45 on Tuesday, up from its previous close of 94.99 on Monday in late North American trade. The dollar scaled a high of 95.68 intraday and a low of 94.85.

The euro trended lower against the dollar at $1.1149 on Tuesday, as compared to its previous close of $1.1236 in North American trade late Monday. The euro scaled a high of $1.1244 intraday and a low of $1.1114.

On the economic front, home prices in major U.S. metropolitan areas unexpectedly grew at a slower annual rate in April, a report from Standard & Poor's showed Tuesday. The S&P/Case-Shiller 20-City Composite Home Price Index rose 4.9 percent year-over-year in April, reflecting a modest slowdown from the 5.0 percent growth seen in March. Economists expected the index to accelerate to 5.4 percent.

While MNI Indicators released a report on Tuesday showing a notable increase by its Chicago business barometer in the month of June, the index continued to point to a contraction in regional business activity. The Chicago business barometer climbed to 49.4 in June from 46.2 in May, but a reading below 50 continues to indicate a contraction. Economists expected the index to rise to 50.6.

After reporting a modest improvement in U.S. consumer confidence in the previous month, a Conference Board report on Tuesday showed its index to have increased much more than expected in June. The consumer confidence index jumped to 101.4 in June from a downwardly revised 94.6 in May. Economists expected the index to rise to 97.4 from the 95.4 originally reported for the previous month.

Eurozone inflation slowed in June largely due to another sharp fall in energy prices, indicating that the central bank has to do more to achieve its inflation target. Inflation eased to 0.2 percent in June, in line with economists' forecast, from 0.3 percent in the prior month, flash data from Eurostat showed Tuesday.

Eurozone unemployment rate remained unchanged at the lowest level seen since early 2012 in May, official data revealed Tuesday. As expected by economists, the jobless rate held steady at 11.1 percent in May, Eurostat reported. This was the lowest rate recorded in the euro area since March 2012.

Germany's retail sales grew for the second straight month in May albeit at a slower pace compared to April, data from Destatis showed Tuesday. Retail sales turnover advanced 0.5 percent from April, when it was up 1.3 percent. This was the second consecutive increase. Sales were expected to remain flat in May.

Germany's unemployment rate held steady in May, figures from Destatis showed Tuesday. The jobless rate came in at an adjusted 4.7 percent in May, the same as in the previous month. In the same month of the previous year, the rate was 5.0 percent.

German unemployment declined less than expected in June, data from the Federal Labor Agency reportedly revealed Tuesday. The number of people out of work fell by 1,000 in June from the prior month, while it was forecast to drop by 5,000. The jobless rate remained unchanged at 6.4 percent in June, in line with expectations.

French consumer spending increased for the first time in three months in May, statistical office Insee reported Tuesday. Consumer spending gained 0.1 percent month-on-month in May, in contrast to the expectations for a 0.2 percent fall. Spending was flat in April and down 0.6 percent in March.

France's producer prices declined again in May largely due to a sharp fall in refined petroleum product prices, the statistical office Insee said Tuesday. Producer prices in the French market decreased 1.7 percent in May from last year. Prices in foreign market climbed 0.6 percent, while prices in total industry declined 1.2 percent.

The U.K. economy grew more than previously estimated in the first quarter, the Office for National Statistics said Tuesday. Gross domestic product gained 0.4 percent sequentially, revised up from the 0.3 percent growth estimated on May 28.

Consumer confidence in the United Kingdom surged in June, a survey from marketing research company GfK revealed on Tuesday, with an index score of +7. That handily beat forecasts for a reading of +2, and was up from +1 in May.