Crude Oil Ends Higher, Pushing $107

(RTTNews) - U.S. crude oil ended higher for a third straight session Tuesday, ahead of the weekly oil inventory report and on some mixed macroeconomic data out of the U.S. Reports of supply disruptions from Libya also raised supply concerns from the Middle East. The uptick in oil prices were, however, checked with the dollar trading stronger against a basket of major currencies and on worries the U.S. Federal Reserve would likely scale down its quantitative easing program sooner rather than later.

Oil prices rose with concerns over supply disruptions from the Middle East after two major oil export terminals in Libya were forced to shutdown by striking security personnel.

Retail sales in the U.S. rose for the fourth consecutive month in July, a report from the Commerce Department showed Tuesday, albeit slightly weaker than expected due to a notable drop in auto sales. Meanwhile, after reporting decreases in U.S. import prices in the four previous months, a Labor Department report indicated a modest increase in import prices in July.

Light Sweet Crude Oil futures for September delivery, the most actively traded contract, gained $0.72 or 0.7 percent to close at $106.83 a barrel on the New York Mercantile Exchange Tuesday.

Crude prices for September delivery scaled a high of $107.20 a barrel intraday and a low of $105.56.

Yesterday, U.S. crude oil ended marginally higher with little or no direction, as investors awaited fresh cues from some significant macroeconomic data due later in the week.

The weekly crude oil inventories data from the American Petroleum Institute is due Tuesday and the Energy Information Administration report on Wednesday, both of which are expected show a decline in inventories.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.79 on Tuesday, up from 81.48 late Monday in North American trade. The dollar scaled a high of 81.88 intraday and a low of 81.40.

The euro traded lower against the dollar at $1.3258 on Tuesday, as compared to $1.3300 late Monday in North America. The euro scaled a high of $1.3316 intraday and a low of $1.3234.

In economic news, retail sales in the U.S. rose for the fourth consecutive month in July, edging up 0.2 percent in July following an upwardly revised 0.6 percent increase in June. Economists had expected sales to rise by 0.3 percent compared to the 0.4 percent increase originally reported for the previous month. The drop in sales growth was due mainly to a notable drop in auto sales.

Separately, the U.S. Commerce Department said business inventories in the U.S. were virtually unchanged in the month of June, a report showed Tuesday. Business inventories came in unchanged in June after edging down by 0.1 percent in May. Economists expected inventories to increase by about 0.2 percent.

Meanwhile, U.S. import prices showed a modest increase in July, rising 0.2 percent following a revised 0.4 percent decrease in June. However, the price growth fell well short of economist estimates for a 0.9 percent increase.