U.S. crude oil futures ended at a five-month low Tuesday, on demand growth concerns after developments in Greece indicate elections now imminent in the troubled nation. With the likelihood of a fragmented parliament yet again in the new elections in June, the country may be heading out of the eurozone. The eurozone finance ministers at the end of their monthly consultations were firm and insisted that the bailout agreement cannot be renegotiated.
Meanwhile, the dollar firmed its safe haven status, continuing to make impressive strides for a 12th straight day against most major currencies, while the euro slipped to its lowest since mid-January.
Although crude pared some of the early losses on some upbeat economic data out of the eurozone and the U.S., prices dropped sharply near settlement.
Light Sweet Crude Oil futures for June delivery, dropped $0.80 or 0.8 percent to close at $93.98 a barrel on the New York Mercantile Exchange Tuesday.
Crude prices scaled a high of $95.48 a barrel intraday and a low of $93.83.
Yesterday, oil ended at a fresh five month low on demand growth concerns over the Greece political imbroglio, and fears the country may be out of the eurozone
Following the developments in Greece, the euro continued to trade sharply lower against the dollar at $1.2753 on Tuesday, as compared to $1.2840 late Monday. The euro scaled a high of $1.2870 intraday and a low of 1.2752.
The dollar index, which tracks the U.S. unit against six major currencies, was trading higher at 81.126 on Tuesday, from 80.612 in North American trade late Monday. The dollar scaled a high of 81.20 intraday and a low of 80.48.
In economic news, the German economy expanded more than expected in the first quarter of 2012, data released by the Federal Statistical Office showed. Gross domestic product rose 0.5 percent from the prior quarter, when it fell 0.2 percent. Economists had expected only 0.1 percent growth for the first quarter.
Separately, data from the Eurostat revealed that the euro zone economy avoided a recession in the first quarter. Gross domestic product for the 17-nation bloc remained flat sequentially after shrinking 0.3 percent in the fourth quarter. Economists expected a 0.2 percent contraction for the first quarter.
In economic news from the U.S, the Labor Department said that the seasonally adjusted consumer price index was unchanged in April, after a 0.3 percent gain in March. Excluding volatile food and gas costs, core prices rose 0.2 percent.
A report from the U.S. Commerce Department revealed that retail sales in saw a modest increase in the month of April. The report showed that retail sales edged up by 0.1 percent in April following a revised 0.7 percent increase in March. Economists had expected sales to increase by 0.1 percent compared to the 0.8 percent growth originally reported for the previous month. Excluding a 0.5 percent increase in auto sales, retail sales still rose by 0.1 percent in April compared to a 0.8 percent increase in the previous month.
Separately, the Federal Reserve Bank of New York said its general business conditions index jumped to 17.1 in May from 6.6 in April, with a positive reading indicating an increase in regional manufacturing activity. Economists had expected the index to show a more modest increase to a reading of 10.0.
Later today, the focus would be on the American Petroleum Institute report on U.S. crude oil inventories for the week ended May 11.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.