Crude Oil Ends Lower Ahead Of Supply Data

(RTTNews) - U.S. crude oil snapped a two-day gain to end lower Tuesday, as investors await cues from the Federal Reserve Chairman Ben Bernanke's statement before lawmakers later this week, notwithstanding some encouraging macroeconomic data out of the U.S. Traders also await the upcoming weekly inventories data which saw a slump in inventories in weeks earlier, notwithstanding the dollar weakening against a basket of few major currencies.

Light Sweet Crude Oil futures for August delivery, the most actively traded contract, dropped $0.32 or 0.3 percent to close at $106.00 a barrel on the New York Mercantile Exchange Tuesday.

Crude prices for August delivery scaled a high of $107.18 a barrel intraday and a low of $105.70.

Yesterday, oil settled marginally higher on some mixed macroeconomic data with investors weighing some soft Chinese gross domestic product data and developments in Egypt that threatens to disrupt oil shipments from the Middle East.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 82.48 on Tuesday, down from 83.04 late Monday in North American trade. The dollar scaled a high of 83.11 intraday and a low of 82.47.

The euro traded higher against the dollar at $1.3159 on Tuesday, as compared to $1.3064 late Monday in North America. The euro scaled a high of $1.3168 intraday and a low of $1.3052.

In economic news from the U.S., the Labor Department said its consumer price index rose by 0.5 percent in June after inching up by 0.1 percent in May. Economists had been expecting prices to increase by 0.4 percent. Excluding food and energy prices, the core consumer price index edged up by 0.2 percent in June, matching the increase seen in the previous month as well as economist estimates.

Homebuilder confidence in the U.S. improved unexpectedly in July, a report from the National Association of Home Builders showed Tuesday, which is at its highest level in well over seven years. The NAHB/Wells Fargo Housing Market Index jumped to 57 in July from a downwardly revised 51 in June. Economists expected the index to come in unchanged compared to the 52 originally reported for the previous month. The housing market index is at its highest level since a matching reading in January 2006.

With mining output showing a notable increase, the Federal Reserve's report on Tuesday showed industrial production to have risen slightly more than expected in June. Industrial production rose by 0.3 percent in June after coming in unchanged in May. Economists expected production to edge up by 0.2 percent.

From the eurozone, German economic sentiment deteriorated unexpectedly in July, survey data from the Center for European Economic Research revealed. The ZEW indicator of economic sentiment fell 2.2 points to 36.3 point-mark, while it was forecast to improve to 40. Nonetheless, it remains above the historical average of 23.7.

Inflation in euro area accelerated to 1.6 percent in June from 1.4 percent in May, the Eurostat said, while confirming its flash estimate. Month-on-month, the harmonized index of consumer prices increased 0.1 percent in June.

In a separate report, the Eurostat said eurozone trade in goods with the rest of the world showed a surplus in May, which was higher than a month earlier. The trade surplus rose to 15.2 billion euros in May from a downwardly revised 14.1 billion euros in April. A year earlier, the surplus amounted to 6.6 billion euros.

Elsewhere in Europe, U.K. inflation rose to 2.9 percent in June on higher motor fuel and clothing and footwear charges, data from the Office for National Statistics showed. It was the fastest since April 2012. Although the rate exceeded the 2.7 percent in May, it was marginally below the expected rate of 3 percent. Month-on-month, consumer prices fell 0.2 percent, offsetting the 0.2 percent increase in the prior month.

Later today, the American Petroleum Institute will release its U.S. crude oil inventories report for the week ended July 12, while the official Energy Information Administration weekly oil report will be out Wednesday.