Commodity Daily News

Crude Oil rises 2% Ahead of U.S. Factory Data

Oil prices rose above $79 a barrel on Tuesday after data showed U.S. factory orders in September expanded at a quicker pace than expected, signaling potential for more fuel demand in the world's biggest energy consumer.

Crude prices had fallen sharply earlier in the day as the U.S. Dollar firmed to a 1-month high against other currencies and equity markets declined. A firming dollar and falling stock prices are typically signs of investors shunning riskier assets, including commodities.

Oil traders were awaiting weekly U.S. oil inventory data. Analysts expect that U.S. crude inventories rose by 1.4 million barrels last week, but stocks of distillates, like heating oil and diesel, were expected to fall by 1 million barrels, according to experts.