LONDON (SHARECAST) - Crude oil futures slipped over 2 per cent on Tuesday as a raft of disappointing company updates reinforced concern about a weak demand outlook while the reopening of the Keystone pipeline soothed any supply worries.
Crude for December delivery dropped $1.98 to settle at $86.67 a barrel on the New York Mercantile Exchange. Oil skidded to a low of $85.69 earlier in the session.
Meanwhile, on the ICE futures exchange, Brent oil futures declined $1.19 at $108.25.
While uninspiring earnings reports from big guns such as Caterpillar and DuPont sparked Tuesday’s decline, oil prices have been on a mostly downward trend in the last month on persistent concerns about the health of the global economy and as data shows buoyant supplies.
The stronger dollar also eroded the appeal of crude oil as it makes it more expensive for holders of other currencies. The dollar index, which measures the US currency against a basket of six others, rose to 79.942 from 79.654 on Monday.
Elsewhere disappointing corporate earnings also wiped the shine off gold on Tuesday, sending the yellow metal tumbling to almost a seven week low.
Gold for December delivery lost $16.90 to settle at $1,709.40 an ounce on the Comex division of the New York Mercantile Exchange.
Among other precious December silver fell 46 cents to $31.79 an ounce while January platinum tumbled $36.60 at $1,575.60 an ounce.
Palladium for December dragged $28.80 to $593.85 an ounce.