Crude Oil Ends Higher Ahead Of Weekly Supply Data

(RTTNews) - U.S. crude oil snapped a three-day loss to end higher on Tuesday, ahead of the official weekly oil report from the Energy Information Administration on Wednesday and the American Petroleum Institute report due later today.

Oil prices earlier in the day dropped sharply after the Western powers reached a historic nuclear agreement with Tehran that could lower geopolitical tensions, and providing Iran with a breather with lifting of sanctions.

With an agreement that ends the 12-year impasse over Iran's nuclear program, Iranian oil will be back on global markets after years of sanction.

Nevertheless, analysts still ponder as how soon can Iran ramp up its production to make an impact on global markets. Additionally, the deal needs to be cleared by the U.S. Congress, which could take about 30 to 60 days with all the procedures to be completed before a vote.

Meanwhile, oil industry service provider Baker Hughes Inc. said the number of active rigs drilling for oil in the U.S. rose by five last week to 645, a second straight week of gain, following 29 straight weeks of decline.

Light Sweet Crude Oil futures for August delivery, the most actively traded contract, jumped $0.84 or 1.6 percent, to settle at $53.04 a barrel on the New York Mercantile Exchange Tuesday.

Crude prices for August delivery scaled a high of $53.33 a barrel intraday and a low of $50.88.

On Monday, crude oil prices fell $0.54 or 1.0 percent, to settle at $52.20 a barrel, on concerns of a supply glut after talks between Iran and the West neared a deal, even as worries over Greece eased after a last-minute deal with creditors.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 96.66 on Tuesday, down from its previous close of 96.80 on Monday in late North American trade. The dollar scaled a high of 97.05 intraday and a low of 96.27.

The euro trended higher against the dollar at $1.1005 on Tuesday, as compared to its previous close of $1.1002 in North American trade late Monday. The euro scaled a high of $1.1079 intraday and a low of $1.0967.

On the economic front, a Commerce Department report on Tuesday showed U.S. retail sales to have unexpectedly pulled back in June, after reporting a sharp jump in sales in the previous month. Retail sales fell by 0.3 percent in June compared to economist estimates for an increase of about 0.3 percent.

Import prices in the U.S. unexpectedly declined modestly in June, a report from the Labor Department showed Tuesday, with a drop in non-fuel prices more than offsetting an increase in fuel prices. Import prices edged down 0.1 percent in June following a 1.2 percent increase in May. Economists expected prices to inch up by 0.1 percent.

The Labor Department also said export prices fell 0.2 in June after climbing 0.6 percent in the previous month. Export prices had been expected to rise by 0.2 percent.

Business inventories in the U.S. rose in line with estimates in May, a report from the Commerce Department showed Tuesday. Business inventories rose 0.3 percent in May after climbing 0.4 percent in April, in line with the consensus estimate.

Eurozone industrial production declined unexpectedly in May, largely due to a fall in energy output, data from Eurostat showed Tuesday. Industrial production was down 0.4 percent month-on-month in May after staying flat in April. It was forecast to rise 0.2 percent in May.

German investor confidence declined less-than-expected in July as the crisis in China and Greece failed to result in much impact, survey results showed Tuesday. The Indicator of Economic Sentiment for Germany dropped to 29.7 from 31.5 in the previous month, the Mannheim-based Centre for European Economic Research or ZEW said. Economists had forecast a score of 29. The latest reading is well above its long-term average of 24.9 points.

Germany's inflation slowed as initially estimated in June due largely to falling energy prices, final data from Destatis showed Tuesday. Inflation eased to 0.3 percent in June from 0.7 percent in May. The inflation rate as measured by the consumer price index decreased after four months of uninterrupted increase.

U.K. inflation returned to zero in June, data published by the Office for National Statistics showed Tuesday. Consumer prices remained flat on a yearly basis in June as expected by economists after rising 0.1 percent in May.

House price inflation in the United Kingdom accelerated in May from a 16-month low in the previous month, figures from the Office for National Statistics showed Tuesday. Average house prices climbed 5.7 percent year-over-year in May, slightly faster than April's 5.5 percent increase. In March, prices had risen 9.6 percent.

The total value of like-for-like sales in the United Kingdom was up 1.8 percent on year in June, the British Retail Consortium said on Tuesday. That topped forecasts for an increase of 0.5 percent following the flat reading in May.