Oil dips from seven-month high as investors take profits
Crude oil dipped a little from its seven-month peak on Tuesday as investors locked in profits from previous gains.
Contract price rose to a fresh seven-month peak of 69.05 U.S. dollars during the session, boosted by the bullish home sales data. According to the National Association of Realtors, U.S. pending sales of existing homes showed the biggest jump in nearly eight years, indicating the worst time of the housing sector might have been over.
Oil also got a lift from a weakening dollar, which hit a new low for the year on Tuesday. However, the rising momentum was restrained as the Organization of Petroleum Exporting Countries (OPEC) raised output in May and investors took profits after six straight sessions of price jumps.
Light, sweet crude for July delivery slipped 3 cents to settle at 68.55 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude rose 20 cents to settle at 68.17 dollars a barrel on the ICE Futures Exchange.