Crude Oil Ends Lower On Demand Concerns

(RTTNews) - U.S. crude oil eased from a six-week high to end lower Tuesday, on news that Libya would soon start shipments of crude and on demand growth concerns after some recent soft global macroeconomic data. Nonetheless, losses were capped as the Ukraine crisis continued to escalate further.

Investors also await the release of the official weekly inventories data on Wednesday, which is largely expected to show an uptick in supplies.

The dollar strengthened after the U.S. and the European Union said they would possibly consider additional sanctions against Moscow, as pro-Russian activists continued to forcefully occupy government buildings in eastern Ukraine, ignoring a Monday deadline to vacate.

Meanwhile, reports indicate Ukrainian forces moving towards the restive areas with armored personnel carriers and tanks, in what seems to be an imminent fightback. The possibilities of supply disruptions from Russia remained a concern amid the unrest in Ukraine, with likelihood of more Western sanctions on Moscow.

Light Sweet Crude Oil futures for May delivery, the most actively traded contract, slipped $0.30 or 0.3 percent to close at $103.75 a barrel on the New York Mercantile Exchange Tuesday.

Crude prices for May delivery scaled a high of $104.05 a barrel intraday and a low of $102.91.

Yesterday, crude oil ended higher on some positive macroeconomic data from the U.S. and on possibilities of supply disruptions from Russia amid continued unrest in Ukraine.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.80 on Tuesday, up from its previous close of 79.76 late Monday in North American trade. The dollar scaled a high of 79.90 intraday and a low of 79.69.

The euro traded lower against the dollar at $1.3808 on Tuesday, as compared to its previous close of $1.3821 late Monday in North America. The euro scaled a high of $1.3832 intraday and a low of $1.3792.

In economic news from the U.S., the Labor Department said consumer prices in the U.S. rose by a slightly more than expected 0.2 percent in March, after inching up by 0.1 percent in each of the previous two months. Economists had been expecting another 0.1 percent increase.

The core consumer price index, which excludes food and energy prices, also rose by 0.2 percent in March after ticking up by 0.1 percent for three straight months. Core prices had been expected to inch up by 0.1 percent once again.

Business activity for New York manufacturers was roughly flat in April, the Federal Reserve Bank of New York said in a report on Tuesday, with the index of regional manufacturing activity showing an unexpected 1.3 percent decrease, from a reading of 5.6 in the previous month. Economists expected the index to climb to 8.0.

According to data released by the National Association of Home Builders, homebuilder confidence in the U.S. has seen a modest improvement, with the NAHB/Wells Fargo Housing Market Index edging up to 47 in April, from a downwardly revised 46 in March. Economists expected the index to climb to a reading of 49 from the 47 originally reported for the previous month.

Meanwhile, Federal Reserve Chair Janet Yellen said at an Atlanta Fed banking conference that the Federal Reserve is actively considering new rules to address risks in short-term wholesale funding markets.

U.K. house prices increased at its fastest pace in nearly four years in February, with its house price index rising 9.1 percent annually in February, following a 6.8 percent gain in January. Inflation was the highest since June 2010 and follows the moderate house price increases experienced since April 2012 and is driven in large part by increases in London.

Investor sentiment in Germany weakened for a fourth straight month in April as the effect of the Ukraine crisis continued to weigh, results of a key survey showed Tuesday. The economic expectations index for Germany dropped to 43.2 from 46.6 in March, the Mannheim-based Centre for European Economic Research said. It was the lowest since August last year. The score was worse than the 45 forecast by economists, but much above its long-term average of 24.6.