Crude Oil Ends Lower Ahead Of Supply Data, IEA Demand Outlook

(RTTNews) - U.S. crude oil snapped a three-day gain to end lower, ahead of the official crude supply data due Wednesday, with investors continuing to keep a close watch on the developments in Ukraine and the Middle East.

Meanwhile, the International Energy Agency lowered its preliminary oil demand outlook for this year and 2015, contributing to a slip in oil prices.

Tensions in Ukraine continued to persist, with reports that a convoy of 280 Russian trucks carrying humanitarian aid is headed for Ukraine. However, Ukraine has indicated it would not allow entry to the trucks unless Russia adheres to protocol and send the aid under the leadership of the Red Cross.

Investors also await the weekly crude inventory data from the U.S. Energy Information Administration, due tomorrow. The American Petroleum Institute is due to release its weekly oil report late today.

A fresh three-day truce in Gaza that came into effect Monday morning too helped ease geopolitical worries.

Light Sweet Crude Oil futures for September delivery, the most actively traded contract, dropped $0.71 or 0.7 percent to close at $97.37 a barrel on the New York Mercantile Exchange Tuesday.

Crude prices for September delivery scaled a high of $97.94 a barrel intraday and a low of $96.81.

On Monday, crude oil futures ended higher with investors treading cautiously amid concerns over developments in the Middle East and on escalating tensions in Ukraine.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.55 on Tuesday, up from its previous close of 81.46 late Monday in North American trade. The dollar scaled a high of 81.68 intraday and a low of 81.47.

The euro traded lower against the dollar at $1.3365 on Tuesday, as compared to its previous close of $1.3385 late Monday in North American trade. The euro scaled a high of $1.3387 intraday and a low of $1.3336.

In economic news, German economic confidence weakened sharply to its weakest level since December 2012 as geopolitical tensions weighed on analyst expectations, a survey from the Mannheim-based Centre for European Economic Research /ZEW showed Tuesday.

The indicator of economic sentiment plunged by 18.5 points to 8.6 in August, while it was forecast to drop to 17.