Crude Oil Slumps To End Below $94 A Barrel

(RTTNews) - U.S. crude oil plunged to end at a five-month low Tuesday, amid concerns the weekly oil inventory reports would likely show a further increase in supplies even as the dollar strengthened against a band of select currencies. Investors weighed the prospects of burgeoning inventories over the last several weeks, with the official U.S. crude oil stockpile details scheduled for release on Wednesday.

Light Sweet Crude Oil futures for December delivery, the most actively traded contract, plummeted $1.25 or 1.3 percent to close at $93.37 a barrel on the New York Mercantile Exchange Tuesday.

Crude prices for December delivery scaled a high of $94.90 a barrel intraday and a low of $93.07.

Yesterday, oil settled almost flat under pressure from rising inventories with the dollar trending lower against a basket of major currencies. Investors, meanwhile, opted for some bargain hunting, weighing the prospect of the U.S. Federal Reserve continuing its monthly bond-buying program untouched for the foreseeable future.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.72 on Tuesday, up from 80.58 late Monday in North American trade. The dollar scaled a high of 80.81 intraday and a low of 80.50.

The euro traded lower against the dollar at $1.3471 on Tuesday, as compared to its previous close of $1.3514 late Monday in North America. The euro scaled a high of $1.3523 intraday and a low of $1.3450.

In economic news from the U.S., the Institute for Supply Management said its non-manufacturing index climbed to 55.4 in October from 54.4 in September, with a reading above 50 indicating growth in the service sector. The modest increase came as a surprise to economists, who had been expecting the index to dip to a reading of 54.0.

Elsewhere, eurozone economic growth is set to gather pace over the forecast horizon, but the return to solid growth will be a gradual process, the European Commission said in its Autumn Forecast. The commission estimates euro zone GDP to shrink 0.4 percent this year, unchanged from the previous estimate. Meanwhile, the outlook for next year was lowered marginally to 1.1 percent from 1.2 percent.

Elsewhere, British retail sales picked up in October, with lower food and clothing sales limiting overall gains. Sales rose 0.8 percent year-over-year following the 0.7 percent improvement seen in September, the British Retail Consortium reported.

Switzerland's consumer prices declined further in October, and the rate of fall exceeded economists' expectations, latest data showed. The consumer price index dropped 0.3 percent in October from the same month of last year, following a 0.1 percent decline in September, the Federal Statistical Office said. Economists had forecast a 0.1 percent for October.