Investing.com - U.S. oil futures fell to the lowest levels of the session on Tuesday, following the release of disappointing U.S. consumer confidence data.
On the New York Mercantile Exchange, crude oil for delivery in November traded at $93.36 a barrel during U.S. morning hours, down $1.21 from a closing price of $94.57 on Monday.
Nymex prices hit a session high of $94.90 earlier, the most since September 4.
Futures were likely to find support at $92.74 a barrel, the low from September 29 and resistance at $95.39 a barrel, the high from September 4.
The Conference Board said its index of consumer confidence fell to 86.0 this month from a reading of 93.4 in August. Analysts expected the index to decline to 92.5 in September.
The disappointing data followed a report which showed that manufacturing activity in the Chicago-area expanded at a slower rate than expected in September.
Market research group Kingsbury International said its Chicago purchasing managers’ index fell to a seasonally adjusted 60.5 this month from a reading of 64.3 in August. Analysts had expected the index to decline to 61.9 in September.
Market players awaited the release of fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 0.3 million barrels in the week ended September 26.
U.S. oil futures are on track for an 11.2% drop in the three months to September amid speculation global supplies remain ample while demand slows.
Meanwhile, the dollar index has gained nearly 7.5% this quarter, the most since the 2008 global financial crisis, amid speculation a strengthening economic recovery in the U.S. would prompt the Federal Reserve to hike rates sooner and faster than previously expected.
Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for November delivery lost 67 cents to hit $96.54 a barrel during U.S. morning trade.
London-traded Brent prices are almost 14% lower since the end of June as global supplies were seen as ample despite ongoing violence in North Africa and the Middle East.