The price of crude oil was extending losses Tuesday morning on demand concerns amid reports that Saudi Arabia is pumping at high rates to dampen prices.
Light Sweet Crude Oil (WTI) futures for October delivery, shed $0.46 to $96.16 a barrel. Yesterday, oil dropped dramatically in the last few minutes of regular trade to end sharply lower amid rumors of oil release from the Strategic Petroleum Reserve after prices galloped following the Federal Reserve announcement of additional quantitative easing measures last week. Oil was trading modestly higher for much of the day, before shedding gains in the last few minutes to close.
This morning, the U.S. dollar was leveling off from its four-month low versus the euro and sterling, while moving lower against the yen and the Swiss franc.
In economic news, Germany's economic sentiment improved in September after easing for four straight months, the Mannheim-based ZEW said. The ZEW Indicator of Economic Sentiment rose 7.3 points to -18.2. However, the negative reading indicates that the financial market experts expect the German economy to lose momentum over the next six months.
Meanwhile, a survey report from the Office for National Statistics revealed that house price inflation in the U.K. eased more than expected in July. The ONS house price index rose 2 percent year-on-year in July, slower than 2.3 percent gain in June. This was also weaker than the 2.1 percent rise forecast by economists.
Traders will look to the results of the September survey on homebuilders' confidence from the National Association of Home Builders, due out at 10 a.m. ET. The consensus estimates call for the index to rise to 38 from 37 in August.
Today after the market hours, the API will release its U.S. crude oil inventories report for the weekended September 14.
by RTT Staff Writer
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