Crude Oil Ends Higher On Upbeat Data

(RTTNews) - U.S. crude oil ended higher for a third straight session Tuesday, on some upbeat economic news from the U.S. and Europe, even as the dollar continued to fluctuate against a basket of major currencies. Investors also await the official weekly oil data on Wednesday, with the American Petroleum Institute is scheduled to release its report later today.

Investors largely ignored the oversupply situation, despite indications that global stockpiles will continue to rise. However, expectations that U.S. shale companies will reduce output later this year have also helped crude snap back from recent 6-year lows.

In some upbeat economic news, consumer prices in the U.S. rose in line with estimates in February, partly reflecting a rebound in energy prices. Meanwhile, new home sales in the U.S. also increased unexpectedly in February, the highest level in seven years.

Encouraging economic news from the euro area stemmed the collapse of the euro and put a floor under most dollar-denominated commodities.

From the eurozone, private sector activity grew at the fastest pace in almost four years in March as the expansion in the largest member country hit an eight-month high, signs that the quantitative easing of the ECB has started to take effect. In the meantime, Germany's private sector expanded at the strongest pace in eight months during March.

However, the manufacturing sector in China contracted in March, a survey from HSBC Bank showed on Tuesday.

Light Sweet Crude Oil futures for May delivery, the most actively traded contract, added $0.06 to settle at $47.51 a barrel on the New York Mercantile Exchange Tuesday.

Crude prices for May delivery scaled a high of $48.56 a barrel intraday and a low of $46.67.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 97.21 on Tuesday, up from its previous close of 96.96 on Monday in late North American trade. The dollar scaled a high of 97.38 intraday and a low of 96.39.

The euro trended lower against the dollar at $1.0922 on Tuesday, as compared to its previous close of $1.0946 in North American trade late Monday. The euro scaled a high of $1.1030 intraday and a low of $1.0892.

In economic news, consumer prices in the U.S. rose in line with economist estimates in February, with the increase partly reflecting a rebound in energy prices, a report from the Labor Department showed Tuesday. The consumer price index edged up by 0.2 percent in February after tumbling 0.7 percent in January. This was in line with the consensus estimate.

New home sales in the U.S. unexpectedly increased in February with sales jumping to their highest level in seven years, a Commerce Department report revealed Tuesday. New home sales surged 7.8 percent to an annual rate of 539,000 in February from the revised January rate of 500,000. Economists expected new home sales to drop to a rate of 462,000 from the 481,000 originally reported for the previous month.

Meanwhile, St. Louis Federal Reserve President James Bullard told a London panel this morning that "Zero is no longer the appropriate interest rate for the U.S. economy."

Elsewhere, the manufacturing sector in China contracted in March, a survey from HSBC Bank showed on Tuesday, with a PMI score of 49.2. That was well shy of a forecast for 50.5, and down sharply from 50.7 in February.

China's economic growth could ease further in the first quarter of this year from a five-year low logged in the final three months of 2014, a top government think-tank predicted this week. Gross domestic product growth could ease to 6.85 percent in the first quarter of the year from 7.3 percent in the fourth quarter of 2014, the Chinese Academy of Social Sciences said.

Earlier this month, the State Information Centre predicted that China's economic growth is set to slow to 7 percent in the first quarter of this year.

Eurozone private sector grew at the fastest pace in almost four years in March as the expansion in the largest member country hit an eight-month high, signs the quantitative easing of the ECB has started to take effect.

Eurozone's flash composite Purchasing Managers' Index rose to 54.1 in March from 53.3 in February, data from Markit Economics revealed Tuesday. The index rose for the fourth consecutive month to reach the highest since May 2011. The reading stayed above the forecast of 53.6.

Germany's private sector expanded at the strongest pace in eight months in March, flash data from Markit Economics showed Tuesday. The composite Purchasing Managers' Index rose to 55.3 from 53.8 in February. The growth has stretched to 23 months and the latest rate of expansion was the most marked since July last year.

The French private sector expanded for the second month but the pace of growth eased in March, flash survey data published by Markit Economics showed Tuesday. The flash composite output index fell to 51.7 in March from 52.2 in February.

U.K. inflation fell to zero for the first time on record in February on sharp declines in fuel and food prices and factory-gate prices continued its negative trend. Consumer prices remained flat in February from last year after rising 0.3 percent in January, the Office for National Statistics said Tuesday. It was the first time that inflation was zero since comparable records began in 1989. Prices were expected to rise 0.1 percent.

House price inflation in the United Kingdom eased more-than-expected in January to its lowest level in ten months, figures from the Office for National Statistics showed Tuesday. The house price index rose 8.4 percent year-over-year in January, following a 9.8 percent increase in December. Economists had expected prices to increase by 8.9 percent.