The price of crude oil was ticking lower Tuesday morning amid concerns over the economic growth in the world’s largest economy after US President Barack Obama warned Republicans over the debt ceiling.
Light Sweet Crude Oil (WTI) futures for February delivery, eased $0.07 to $94.07 barrel.
This morning, the U.S. dollar was lingering around a 11-month low versus the euro and leveling off from its 2-week low against sterling. The buck was hovering around a 30-month high versus the yen and ticking higher against the Swiss franc.
In economic news, Germany’s EU harmonized inflation increased less than initially estimated in December, final data from the Federal Statistical Office showed. The harmonized index of consumer prices (HICP), measured under the EU methodology, increased 2 percent on an annual basis in December, slower than the 2.1 percent growth estimated earlier. In November, the HICP had gained 1.9 percent.
A separate report from the Federal Statistical Office revealed that German economic growth eased more than expected last year, due to significant slowdown in economic activity in the second half of the year. The gross domestic product rose 0.7 percent in price-adjusted terms in 2012, much weaker than the 3 percent growth in 2011 and 4.2 percent expansion in 2010.
Meanwhile, U.K. consumer price inflation remained unchanged at 2.7 percent for the third month in a row in December, the Office for National Statistics said. The rate also came in line with economists’ expectations.
Elsewhere, exports from euro area increased for the first time in three months in November, Eurostat reported. Shipments rose by seasonally adjusted 0.8 percent month-on-month, partially offsetting the 1.2 percent decrease in October. On the other hand, imports fell 1.5 percent, following a 0.8 percent rise.
Traders will look to the report on retails sales from the Commerce Department, due out at 8.30 a.m ET. The consensus estimates call for a 0.2 percent increase in retail sales and a 0.3 percent increase in retail sales, excluding autos. Sales had risen 0.3 percent in October.
Simultaneously, the Labor Department is due to release its producer price inflation report for December at 8:30 am ET. Economists estimate a 0.1 percent drop in producer prices for the month, while core producer prices may have risen 0.2 percent. In October, the producer price index fell 0.8 percent but the core index rose 0.1 percent.
Today after the market hours, the API will release its U.S. crude oil inventories report for the weekended January 11.
by RTT Staff Writer
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