U.S. crude oil futures rallied to end higher Tuesday, after the Federal Reserve Chairman Ben Bernanke addressing lawmakers failed to make any clear hint at further quantitative easing investors expected. The dollar also fluctuated to trade lower against a basket of major currencies following the Bernanke testimony.
While acknowledging the recent spate of disappointing economic data, Bernanke did not present any clear hint at further monetary stimulus. Investors expect Bernanke to provide some clear hints on further quantitative easing in his two-day testimony before the Congress.
Light Sweet Crude Oil futures for August delivery, gained $0.79 or 0.9 percent to close at $89.22 a barrel on the New York Mercantile Exchange Tuesday.
Crude prices scaled a high of $89.46 a barrel intraday and a low of $87.41.
Yesterday, oil moved up on hopes that China and the US will take new steps to bolster their economies.
The euro rallied to edge up against the dollar at $1.2277 on Tuesday, as compared to $1.2272 late Monday in North America. The euro scaled a high of $1.2316 intraday and a low of $1.2190.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 83.12 on Tuesday, down from 82.91 in North American trade late Monday. The dollar scaled a high of 83.56 intraday and a low of 82.91.
In economic news from the U.S., the Labor Department's consumer price index came in unchanged in June following a 0.3 percent drop in May. The reading was in line with economists' estimates. Excluding food and energy prices, core consumer price index rose by 0.2 percent in June. The modest increase matched the core price growth seen in the three previous months and came in line with expectations.
A Federal Reserve report on Tuesday showed industrial production in the U.S. increased slightly more than anticipated in June, partly due to a rebound by output in the manufacturing sector. Industrial production rose by 0.4 percent in June following a revised 0.2 percent decrease in May. Economists expected production to increase by 0.3 percent compared to the 0.1 percent drop originally reported for the previous month.
From the eurozone, German investor sentiment for July declined for a third straight month, according to a survey. The ZEW Indicator of Economic Sentiment dropped to minus 19.6 points from minus 16.9 in June. Nonetheless, it was slightly better than economists' forecast of minus 20.
Meanwhile, U.K.'s annual consumer price inflation eased for a third straight month in June to its lowest level since November 2009, helped by falling fuel prices and heavy discounting to boost sales, data from the Office for National Statistics showed.
The American Petroleum Institute is set to release its U.S. crude oil inventories report for the week ended July 13 later in the day. Focus will also be on the Energy Information Administration weekly report due Wednesday.
by RTT Staff Writer
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