Crude Oil Ends Below $75 Ahead Of Supply Data

(RTTNews) - U.S. crude oil ended sharply lower Tuesday, ahead of the official weekly crude inventory data from the Energy Information Administration and with investors focused on the Organization of the Petroleum Exporting Countries meet due later this month.

The American Petroleum Institute will release its crude oil report for the week ended November 14 later today, while the U.S. Energy Information Administration is scheduled to report its inventory data on Wednesday.

The downtrend came even as the dollar ticked lower with Japan unexpectedly slipping into recession in the third quarter. Oil is supported by a weaker greenback amid predictions that U.S. crude stockpiles would likely have declined by 1 million barrels last week.

Investors also look ahead to the outcome of the OPEC meet scheduled next week, weighing prospects for a reduction in crude output. Some OPEC members have already said they would rather keep production high and cut prices than reduce output.

Light Sweet Crude Oil futures for December delivery, the most actively traded contract, dived $1.03 or 1.4 percent to close at $74.61 a barrel on the New York Mercantile Exchange Tuesday.

Crude prices for December delivery scaled a high of $76.44 a barrel intraday and a low of $74.23.

On Monday, crude oil futures ended down $0.18 or 0.2 percent at $75.64 a barrel, amid concerns about the global economy after Japan slipped into recession in the third quarter and the dollar strengthening. Economic reports out of the U.S. were soft with industrial production declining unexpectedly in October and a smaller than expected rebound in New York area manufacturing activity.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 87.55 on Tuesday, down from its previous close of 88.00 late Monday in North American trade. The dollar scaled a high of 88.00 intraday and a low of 87.51.

The euro trended higher against the dollar at $1.2535 on Tuesday, as compared to its previous close of $1.2450 late Monday in North American trade. The euro scaled a high of $1.2545 intraday and a low of $1.2444.

In economic news, producer prices in the U.S. unexpectedly increased in October with prices for services and food leading the way higher, a report from the Labor Department showed Tuesday. The producer price index for final demand rose 0.2 percent in October after edging down 0.1 percent in September. Economists expected the index to dip by another 0.1 percent.

A report from the National Association of Home Builders on Tuesday showed U.S. homebuilder's confidence to have rebounded much more than anticipated in November, after having reported a notable deterioration in the previous month. The NAHB/Wells Fargo Housing Market Index jumped to 58 in November after tumbling to 54 in October. Economists expected the index to show a modest increase to 55.

German investor confidence improved for the first time this year, exceeding expectations, boosted by signs of stability in the biggest eurozone economy. The ZEW Indicator for Economic Sentiment climbed to 11.5 from -3.6 in October, a survey by Mannheim-based Centre for European Economic Research showed Tuesday. Economists expected a modest improvement in the index to 0.5.

U.K. inflation rose unexpectedly from a 5-year low in October as transport cost fell at a slower pace, while factory gate prices continued its downward trend. Inflation rose to 1.3 percent in October from 1.2 percent in September, the Office for National Statistics said Tuesday. Economists had forecast the rate to remain at 1.2 percent.

House prices growth in the United Kingdom quickened unexpectedly in September, data from the Office for National Statistics showed Tuesday. House prices grew 12.1 percent year-on-year in September following the 11.7 percent rise in August. Economists expected prices to climb 11.2 percent.