Investing.com – Crude oil futures edged lower on Tuesday, but remained close to the previous session’s two-week high as a stronger U.S. dollar dampened the appeal of commodities ahead of the release of minutes from the Federal Reserve’s August policy-setting meeting.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at USD87.11 a barrel during European morning trade, edging 0.18% lower.
It earlier fell as much as 0.23% to trade at a daily low of USD87.06 a barrel.
The U.S. dollar strengthened against most of its major counterparts, as risk appetite ebbed ahead of the release of the minutes of the Federal Reserve’s August policy setting meeting later in the day.
Investors hope the minutes will provide clues regarding further easing measures after Fed Chair Ben Bernanke said Friday that there was no need for an immediate round of additional economic stimulus but left options open.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.21% to hit 73.92, the highest since August 26.
Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.
Markets were awaiting fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show stockpiles climbed by 0.9 million barrels last week, while gasoline stockpiles were projected to fall by 0.9 million barrels.
Crude prices jumped nearly 2.6% on Monday to hit a two-week high of USD87.70 a barrel after official data showed that U.S. personal spending rose the most since February last month, easing concerns over the economic outlook of the world’s largest oil consumer.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery shed 0.23% to trade at USD111.91 a barrel, up USD24.80 on its U.S. counterpart.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at USD87.11 a barrel during European morning trade, edging 0.18% lower.
It earlier fell as much as 0.23% to trade at a daily low of USD87.06 a barrel.
The U.S. dollar strengthened against most of its major counterparts, as risk appetite ebbed ahead of the release of the minutes of the Federal Reserve’s August policy setting meeting later in the day.
Investors hope the minutes will provide clues regarding further easing measures after Fed Chair Ben Bernanke said Friday that there was no need for an immediate round of additional economic stimulus but left options open.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.21% to hit 73.92, the highest since August 26.
Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.
Markets were awaiting fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show stockpiles climbed by 0.9 million barrels last week, while gasoline stockpiles were projected to fall by 0.9 million barrels.
Crude prices jumped nearly 2.6% on Monday to hit a two-week high of USD87.70 a barrel after official data showed that U.S. personal spending rose the most since February last month, easing concerns over the economic outlook of the world’s largest oil consumer.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery shed 0.23% to trade at USD111.91 a barrel, up USD24.80 on its U.S. counterpart.