RTTNews - Crude oil finished lower on Tuesday, surrendering some of the recent rally, on demand concerns. Investors awaited the Energy Information Administration inventory report tomorrow.
Light sweet crude for August delivery dropped to $67.23, down $1.15 on the session. Prices touched as low as $66.48 after reaching as high as $68.99 yesterday.
BP (BP) revealed a sharp drop in second quarter earnings on Tuesday. In the report, the company indicated little confidence energy demand will improve in the near future.
The EIA data is expected at 10:30 a.m. ET Wednesday. The lesser-regarded American Petroleum Institute report will be released later this afternoon.
Last week's EIA report showed crude oil inventories decreased by 1.8 million barrels in the week ended July 17. Experts were looking for a drop of about 2 million barrels. Gasoline inventories increased by 800,000 barrels.
Investors mulled data showing that the S&P/Case-Shiller 20-City Composite Home Price Index fell at an annual rate of 17.1 percent in May compared to the 18.1 percent decrease reported for April. Economists had expected the report to show that prices fell 17.9 percent year-over-year.
Later, the Conference Board said that its consumer confidence index fell to 46.6 in July from an unrevised 49.3 in June. Economists had been expecting a much more modest decline by the index to a reading of about 49.0.
Durable goods orders data is expected at 8:30 a.m. ET tomorrow. Orders are expected to fall 0.6% in June, compared to a rise of 1.8% in May. Excluding transportation, orders are expected to be unchanged for June, compared to a 1.1% increase in May.
Front-month crude finished higher in eight of the last nine sessions. Prices surged $7.49 last week amid hopes of an economic recovery.
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