Crude Oil Ends Flat Ahead Of Supply Data

(RTTNews) - U.S. crude oil slipped for a fourth straight session to end a tad lower on Tuesday, ahead of the official weekly oil inventory report from the Energy Information Administration even as tensions in Ukraine intensified with the Iraqi stalemate continuing unresolved. Nonetheless, some upbeat Chinese manufacturing data helped oil prices rally.

Geopolitical tensions also aided oil after fierce fighting was reported in eastern Ukraine with government forces tightening its deployment against the pro-Russian separatists. The clashes intensified after Ukraine President Petro Poroshenko ended a ten-day cease-fire which failed to stem the violence to any satisfactory levels.

In Iraq, the situation continued to remain uncertain with the Iraqi parliament failing to reach an agreement of any kind to defuse the volatile situation in the country.

In economic news, Chinese manufacturing purchasing managers' index rose to a six-month high in June after a weak start to the year, a survey by the China Federation Of Logistics And Purchasing and the National Bureau of Statistics showed Tuesday.

Activity in the U.S. manufacturing sector grew at an unexpectedly slower rate in June, a report from the Institute for Supply Management showed Tuesday. Meanwhile, construction spending in the U.S. increased much less than expected in May, according to a Commerce Department report.

Light Sweet Crude Oil futures for August delivery, the most actively traded contract, edged down $0.03 to close at $105.34 a barrel on the New York Mercantile Exchange Tuesday.

Crude prices for August delivery scaled a high of $106.09 a barrel intraday and a low of $104.60.

On Monday, crude oil futures ended lower on a strong dollar on diminishing fears of disruption of oil supplies from Iraq amid the sectarian violence the region.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.78 on Tuesday, a tad higher from its previous close of 79.78 late Monday in North American trade. The dollar scaled a high of 79.87 intraday and a low of 79.74.

The euro traded lower against the dollar at $1.3687 on Tuesday, as compared to its previous close of $1.3693 late Monday in North American trade. The euro scaled a high of $1.3700 intraday and a low of $1.3676.

In economic news from the U.S., the Institute for Supply Management on Tuesday said its purchasing managers index edged down to 55.3 in June from 55.4 in May, although a reading above 50 still indicates growth in the manufacturing sector. However, economists expected the index to inch up to a reading of 55.8.

Construction spending in the U.S. increased by 0.1 percent to an annual rate of $956.1 billion in May from the revised April estimate of $955.1 billion, a Commerce Department report showed Tuesday. Economists had expected spending to increase by 0.5 percent. The weak growth was due partly to a drop in spending on private construction, which dipped 0.3 percent to an annual rate of $682.8 billion.

Elsewhere, Chinese manufacturing purchasing managers' index rose to a six-month high in June to 51 from 50.8 in May, in-line with economists' expectations. Meanwhile, HSBC's final China manufacturing Purchasing managers index for June came in at 50.7, as compared to a final reading of 49.4 in May.

Meanwhile, eurozone unemployment rate remained unchanged at an elevated level in May as flattening recovery in the second quarter strained job creation, data from Eurostat revealed Tuesday. The jobless rate came in at a seasonally adjusted 11.6 percent in May after April's figure was revised down from 11.7 percent. Economists had forecast the unemployment rate to remain at 11.7 percent.