Crude Oil Snaps Five-Day Loss To End Higher

(RTTNews) - U.S. crude oil snapped a five-day loss to end higher on Tuesday, after freezing cold weather in large parts of the U.S. pushed heating fuel prices up, even as the dollar strengthened against a basket of major currencies. Nonetheless, the gains were capped as investors continued to worry over the increased oil supply scenario with Libya's oil production and export expected to go normal.

Light Sweet Crude Oil futures for February delivery, the most actively traded contract, gained $0.24 or 0.3 percent to close at $93.67 a barrel on the New York Mercantile Exchange Tuesday.

Crude prices for February delivery scaled a high of $94.22 a barrel intraday and a low of $93.35.

Yesterday, oil extended losses for a fifth session to end at a one-month low on concerns of a supply glut with expectations of Libyan oil production and export returning to normal, even as the dollar weakened against a basket of major currencies. Speculation of South Sudan increasing its oil production and export also pushed oil prices lower.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.81 on Tuesday, up from its previous close of 80.66 late Monday in North American trade. The dollar scaled a high of 80.95 intraday and a low of 80.60.

The euro traded lower against the dollar at $1.3619 on Tuesday, as compared to its previous close of $1.3628 late Monday in North America. The euro scaled a high of $1.3660 intraday and a low of $1.3598.

In economic news from the U.S, a Commerce Department report showed the trade deficit narrowed to $34.3 billion in November from a revised $39.3 billion in October. Economists expected the trade deficit at $39.9 billion from the $40.6 billion originally reported for the previous month.

From the eurozone, Germany's retail sales expanded by seasonally adjusted 1.5 percent month-on-month in November, after falling for two straight months, provisional data from Destatis revealed. Real retail sales turnover dropped 0.8 percent in October and 0.1 percent in September.

Unemployment in Germany declined in December from a month earlier, the latest data from the Federal Labor Agency revealed. The number of unemployed fell by 15,000 in December while expectations were for no change in the figure. In November, unemployment rose by 9,000.

Meanwhile, eurozone inflation slowed to 0.8 percent in December from 0.9 percent in November, preliminary data from Eurostat showed. The rate was forecast to remain unchanged at 0.9 percent. The European Central Bank is viewing inflation rates of below, but close to, 2 percent over the medium term.

Industrial producer prices in the euro area decreased for the fourth consecutive month in November, but at a slower pace than in October, data from Eurostat showed. The producer price index for the domestic market dropped 1.2 percent annually in November, which was slightly slower than the October's 1.3 percent fall. Economists had forecast a 1.3 percent decrease for November.