Crude oil futures gained on Tuesday in reaction to euro zone’s sovereign debt problems. Crude oil futures contract for December delivery gained 1.3 percent or $1.28 to settle at $96.80 on the New York Mercantile Exchange. Other than worries over euro zone’s debt crisis the markets were also concerned over Iran’s nuclear weapons capabilities and chances of conflict with Israel.

Oil economist, James Williams from WTRG Economics commented, “The Iranian problem will hang over us for several months, and any conflict with Israel would likely be followed by an Iranian attempt to block the Strait of Hormuz, which could halt oil shipments out of the Persian Gulf.”

Moreover, the projection of lesser increase in crude oil inventories as compared to expectations further boosted the oil prices. Analysts also forecasted a sudden fall in gasoline stockpiles, for the week. As per latest data of the American Petroleum Institute, crude oil inventories increased by 148,000 barrels for the week ending November 4^th, 2011. Gasoline stockpiles decreased 1.5 million barrels while distillate inventories which include diesel and heating oil declined by 2.9 million barrels for the respective week.

Gasoline futures contract for December delivery declined 0.8 percent or $0.02 to $2.71 per gallon while heating oil futures contract for the same month delivery fell less than $0.01 to $3.12 per gallon.

Natural gas futures contract for December delivery gained 1.3 percent or $0.05 to $3.75 per million British thermal units at the New York Mercantile Exchange.