Crude Oil Ends Higher Ahead Of Supply Data

(RTTNews) - U.S. crude oil ended higher on Tuesday, ahead of the weekly U.S. inventory data amid continued worries over excess supply globally, even as lingering concerns over the health of the global economy remained.

Oil found some support after data showed China's gross domestic product to have risen more than expected in the third quarter, albeit lower than the second quarter growth. It was the weakest expansion of the Chinese economy since early 2009 with slowdown in investment, particularly in the property sector.

Nevertheless, industrial production in China was up 8 percent in September, beating expectations.

Oil prices recently touched the lowest in nearly four years, slipping briefly below $80 amid signs the global market is oversupplied.

Oil's upside is limited due to worries about potential oversupply from the Middle East, with Saudis willing to let oil slide below $80 a barrel in order to counter competitors. However, due to environmental concerns, Saudi Arabia and Kuwait have halted crude production in an oil field jointly run by them.

Light Sweet Crude Oil futures for December delivery, the most actively traded contract, gained $0.58 or 0.7 percent to close at $82.49 a barrel on the New York Mercantile Exchange Tuesday.

Crude prices for December delivery scaled a high of $83.26 a barrel intraday and a low of $81.57.

On Monday, crude oil futures ended a shade lower, weighed down by demand growth worries and speculation of excess supply in the market.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 85.32 on Tuesday, up from its previous close of 85.02 late Monday in North American trade. The dollar scaled a high of 85.33 intraday and a low of 84.74.

The euro trended lower against the dollar at $1.2725 on Tuesday, as compared to its previous close of $1.2800 late Monday in North American trade. The euro scaled a high of $1.2840 intraday and a low of $1.2718.

In economic news, data from the National Association of Realtors showed existing home sales in the U.S. to have increased by a more than expected 2.4 percent to a seasonally adjusted annual rate of 5.17 million in September, after falling 1.8 percent in the preceding month. Economists expected existing home sales to rise to a rate of 5.10 million.

China's gross domestic product expanded 7.3 percent on year in the third quarter, topping forecast for a 7.2 percent increase. However, this was the weakest growth since the first quarter of 2009.

China's industrial production was up 8 percent in September, up from 6.9 percent in the preceding month, beating expectations for 7.5 percent increase.

Eurozone 2013 budget deficit was lower than previous estimates, data based on European System of Accounts 2010 methodology indicated. The budget deficit came in at 2.9 percent of GDP in 2013 instead of 3 percent calculated under ESA95 methodology, Eurostat reported Tuesday. The deficit for 2012 was revised to 3.6 percent from 3.7 percent.