U.S. crude oil ended at a three-month high Tuesday, amid speculation that the European Central Bank is stepping up efforts with further policy measures to tackle the eurozone debt crisis. Oil also tracked the global equity markets, most of which were in positive territory. Meanwhile, the dollar weakened and the euro strengthened on hopes of the ECB making a move to stabilize the eurozone.
Light Sweet Crude Oil futures for September delivery gained $0.71 or 0.7 percent to close at $96.68 a barrel on the New York Mercantile Exchange Tuesday.
Crude prices scaled a high of $96.53 a barrel intraday and a low of $95.02.
Oil settled ended a shade lower yesterday, after US plans to release emergency oil reserves to control rising gasoline prices faced resistance from the International Energy Agency. Investors also weighed reports of increased Saudi Arabian oil production and growth in demand, while the dollar dropped against most major currencies.
The U.S. dollar slipped back near a two-week low versus the euro and the Swiss franc, while lingering around a three-week low against the sterling. The buck was leveling off from its 5-week high versus the yen.
The euro traded lower against the dollar at $1.2478 on Tuesday, as compared to $1.2345 late Monday in North America. The euro scaled a high of $1.2487 intraday and a low of $1.2344.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.84 on Tuesday, down from 82.45 in North American trade late Monday. The dollar scaled a high of 82.47 intraday and a low of 81.79.
In economic news, the U.K. public sector net borrowing, excluding the temporary effects of financial interventions, increased in July, data from the Office for National Statistics showed. Net borrowing was GBP 0.6 billion in July, which was GBP 3.4 billion higher than in July last year when PSNB was -GBP 2.8 billion.
After market hours today, the American Petroleum Institute will release its U.S. crude oil inventories report for the weekended August 17.
by RTT Staff Writer
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