(RTTNews) - The price of crude oil slipped near $94 Tuesday morning as traders fret over the crisis in the euro zone. Also, a firm U.S. dollar weighed on oil prices.
Light Sweet Crude Oil (WTI) futures for August delivery were down $0.85 to $94.30 a barrel. Yesterday, oil extended losses, dipping to a weekly low as concerns of fading demand from the world's two largest oil consumers , China and U.S., coupled with fear that the euro zone's sovereign debt crisis could spread to Italy persuaded investors to move away from oil.
In its monthly Oil Market Report released today, the OPEC lowered its world oil demand growth forecast to 1.36 million barrels per day (mbd), marginally down from its earlier prediction of 1.40 mbd. Global oil demand is expected to grow at a slightly lower 1.32 mbd in 2012, it added.
This morning, the U.S. dollar advanced to a multi-month high versus the euro and sterling. The buck was moving lower versus the yen and the Swiss franc.
British annual inflation slowed unexpectedly in June, data from the Office for National Statistics revealed. Consumer prices rose 4.2 percent year-on-year in June. Economists were expecting the annual increase to stay steady at 4.5 percent in June.
In economic news, the Commerce Department will release its trade balance report for May. Economists expect a deficit of $42.7 million, narrower than the $43.7 billion deficit in April. Focus will also be on the FOMC minutes of its June 21-22 Open Market Committee meeting.
Today after the markets close, the API will release its U.S. crude oil inventories report for the week ended July 08.
