Crude Oil Ends Higher Ahead Of Supply Data

(RTTNews) - U.S. crude oil ended higher on Tuesday, after fluctuating for much of the session, ahead of the official inventories report due tomorrow. Investors also await the outcome of the Federal Reserve policy meet, with expectations the Fed would refrain from tapering its $85 billion quantitative easing program soon.

The eruption of violence in Libya has also renewed fears of supply disruption from the region, with uncertainties over the upcoming talks with Iran.

Light Sweet Crude Oil futures for December delivery, the most actively traded contract, gained $0.31 or 0.3 percent to close at $93.34 a barrel on the New York Mercantile Exchange Tuesday.

Crude prices for December delivery scaled a high of $93.46 a barrel intraday and a low of $92.43.

Yesterday, oil settled lower on demand growth concerns as the supply scenario remained fluid after Saudi Arabia increased its oil production and exports, with September shipments scaling an eight-year high. Investors also weighed some wide-ranging reforms announced by China after its Plenum meet and the upcoming talks between Iran and western powers on the Middle East country's nuclear program.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.71 on Tuesday, down from 80.74 late Monday in North American trade. The dollar scaled a high of 80.84 intraday and a low of 80.56.

The euro traded higher against the dollar at $1.3529 on Tuesday, as compared to its previous close of $1.3506 late Monday in North America. The euro scaled a high of $1.3546 intraday and a low of $1.3488.

In economic news from the U.S., the Labor Department said its employment cost index rose by 0.4 percent in the third quarter following a 0.5 percent increase in the second quarter. Economists had expected the index to rise by another 0.5 percent. Wages and salaries increased by 0.3 percent in the third quarter after rising by 0.4 percent in the second quarter, while benefits rose by 0.7 percent compared to a 0.4 percent increase in the previous quarter.

From the eurozone, Germany's economic sentiment rose more-than-expected in November to its highest level in four years, a survey by the Centre for European Economic Research/ZEW showed. The ZEW Indicator of Economic Sentiment for Germany rose to 54.6 from 52.8 in October. Economists forecast a score of 54. The latest reading is the highest since October 2009.

Elsewhere, the Organization for Economic Co-operation and Development downgraded its global growth projections citing worsening outlook for some emerging economies. The world economy will grow 2.7 percent this year, down from 3.1 percent projected in May. In 2014, growth is forecast to rise to 3.6 percent and then to 3.9 percent in 2015. The estimate for 2014 was lowered from 4 percent.