Crude Oil Ends Lower Ahead Of Supply Data, Iraq

(RTTNews) - U.S. crude oil ended lower for a second straight session Tuesday, ahead of the weekly oil inventory status from the U.S. Energy Information Administration tomorrow and over the ongoing crisis in Iraq with Secretary of State John Kerry continuing with his efforts in Baghdad to chalk out a deal to tackle the ISIS menace.

Investors continued to keenly watch developments in Iraq, where Prime Minister Nuri al-Maliki has reportedly agreed to the creation of a unity government involving Shias, Sunnis and Kurds, by early July.

Meanwhile, U.S. Secretary of State John Kerry returned to Iraq on Tuesday and met Kurdish President Massoud Barzani, aiming to find a solution to the crisis.

The American Petroleum Institute is scheduled to release its weekly oil report later in the day, and the official inventory data from the U.S. Energy Information Administration is due Wednesday morning.

Light Sweet Crude Oil futures for July delivery, the most actively traded contract, shed $0.14 or 0.1 percent to close at $106.03 a barrel on the New York Mercantile Exchange Tuesday.

Crude prices for July delivery scaled a high of $106.46 a barrel intraday and a low of $105.25.

On Monday, crude oil futures ended down $0.66 or 0.6 percent at $106.17 a barrel, after rising to $107.51 a barrel intraday.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.39 on Tuesday, up from its previous close of 80.27 late Monday in North American trade. The dollar scaled a high of 80.43 intraday and a low of 80.19.

The euro traded lower against the dollar at $1.3595 on Tuesday, as compared to its previous close of $1.3604 late Monday in North American trade. The euro scaled a high of $1.3627 intraday and a low of $1.3584.

In economic news from the U.S., data from the Commerce Department showed new home sales to have surged up by a more than expected 18.6 percent to a seasonally adjusted annual rate of 504,000 in May from the revised April rate of 425,000. Economists expected sales to climb to a rate of 440,000 from the 433,000 originally reported for the previous month.

Meanwhile, the Conference Board's report showed U.S. consumer confidence to have risen to a more than expected 85.2 in June, its highest level since January 2008, from a revised 82.2 in May. Economists expected the index to edge up to 83.5 from the 83.0 originally reported for the previous month.

A Standard & Poor's report on Tuesday showed the S&P/Case-Shiller 20-City Composite Home Price Index to have increased at an annual rate of 10.8 percent in April compared to the 12.4 percent growth reported for March. Economists expected the pace of year-over-year growth in prices to show a more modest slowdown to an annual rate of 11.5 percent.

In economic news from Europe, business confidence in Germany deteriorated for the second straight month in June, with a reading on business sentiment declining to a six-month low of 109.7, from 110.4 in May. Economists had forecast the index to drop marginally to 110.3.

A leading economic index for China continued to expand in May, albeit at a slower pace, a survey by the Conference Board revealed on Tuesday. The leading economic index was up 0.7 percent in May to a score of 290.2. That follows 1.0 percent increases in both April and March.