(RTTNews) - The price of crude oil rebounded Tuesday morning as traders shrugged off downgrade of Italy's government debt rating by the S&P.
Light Sweet Crude Oil (WTI) futures for November delivery, the most actively traded contract, gained $1.03 to $86.84 a barrel. Yesterday, oil shed over 2 percent to settle at a 3-week low amid a strong dollar and lingering worries over the euro zone debt issues.
Earlier today, the Standard and Poor's downgraded its rating of Italy's government debt by one notch to AA-1 and maintained its "negative" outlook.
This morning, the U.S. dollar was trading flat versus the euro and sterling, while ticking lower against the Swiss franc and the yen.
In economic news from the euro zone, Germany's economic sentiment deteriorated for a seventh month in September, survey results from ZEW Centre for European Economic Research showed. The index of economic sentiment fell by 5.7 points to -43.3 points. Economists were expecting the indicator to drop to -45.0.
Traders will look to the data on building permits and housing starts from the U.S. Commerce Department, due out at 8.30 a.m ET. Economists estimate housing starts of 592,000 for August, while building permits are expected at 590,000.
Today after the market close, the API will release its U.S. crude oil inventories report for the week ended September 16.
