(RTTNews) - The price of crude oil was firm above the $100-mark Tuesday morning as traders speculate that China might ease its monetary policy after data today revealed that its economy grew at a weaker pace in more than two years. Also, growing tension between Iran and the west supported oil prices.
Chinese economy grew at 8.9 percent in fourth quarter, marginally higher than the 8.7 percent economists had predicted.
Light Sweet Crude Oil (WTI) futures for February delivery were up $2.06 to $100.76 a barrel.
This morning, the U.S. dollar continued to level off from its multi-year high versus the euro and ticking lower against sterling. The buck was little changed versus the Swiss franc and edging up against the yen.
In economic news, euro zone inflation eased more than initially estimated in December, final data from Eurostat revealed. Euro area annual inflation eased to 2.7 percent in December from 3 percent in November. It was revised slightly down from the flash estimate of 2.8 percent. On a monthly basis, consumer prices were up 0.3 percent, below 0.4 percent expected by economists.
Meanwhile, German economic confidence improved strongly in January the Centre for European Economic Research (ZEW) said. The economic sentiment index rose by 32.2 points to -21.6 points, the highest level of the indicator since July 2011. The expected reading for January was -49.2.
Traders will look to the results of the New York Federal Reserve's empire state manufacturing survey, due out at 8:30 a.m. ET. The headline general business conditions index for January is expected to come in at 10.50, a modest increase from 9.5 in December.
