RTTNews - Oil jumped higher on Tuesday as investors looked ahead to the Energy Information Administration's weekly inventory report, which is expected to show a drop in stockpiles tomorrow.
Light sweet crude August delivery rose to $69.24 per barrel, up $1.74 on the session. Prices rallied as high as $69.68 after falling as low as $66.37.
The dollar saw some weakness on Tuesday in New York, adding to oil's hedge value. The buck fell to an 11-day low against the euro and also turned to the downside against the British pound.
Investors also looked ahead to the Energy Information Administration's weekly inventory report. Experts are looking for a drop of 1.2 million barrels of crude oil in the week ended June 19. Gasoline stocks are forecast to rise 1 million barrels.
Last week's data showed crude oil inventories decreased by 3.9 million barrels in the week ended June 12, but gasoline stocks increased by 3.4 million.
The Federal Open Market Committee began its two-day policy meeting today, with an interest rate decision coming tomorrow. Interest rates are expected to remain unchanged near zero.
On the economic front, a National Association of Realtors report showed that existing home sales rose 2.4 percent to an annual rate of 4.77 million units in May from a revised 4.66 million units in April. Economists had expected sales to rise 3 percent to 4.82 million units from the 4.68 million units originally reported for the previous month.
The dollar saw some weakness against its European rivals, adding to gold's hedge appeal. The greenback fell to an 11-day low against the euro and also turned to the downside against the British pound. Gold usually moves opposite the dollar because of the precious metal's hedge appeal.
On the final day of the July contract, crude fell to $66.93, a drop of $2.62, on Monday. The more-actively traded August crude contract fell $2.52 to $67.50 per barrel.
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