Crude oil futures declined on Tuesday as API reported huge increased in crude oil inventories data. The stronger greenback also exerted some pressure Crude oil futures. Commodities are always negatively correlated with US dollar as stronger greenback makes commodities expensive for investors of other currencies.

Editor, Tom Essaye from 7:00’s Report commented, “Oil is lower on just some general disappointment on a lack of Greek debt negotiations … and on a higher dollar.”

In Greece negotiations have halted at the final stage over the option of private bondholders to write down Greece’s debt by 100 billion euros.

Crude oil futures for March delivery declined 0.6 percent or $0.63 to settle at $98.95 per barrel on the New York Mercantile Exchange. The respective contract touched its intraday low of $98.25 per barrel on Tuesday.

As per latest data of the American Petroleum Institute, crude oil stockpiles increased by 7.3 million barrels for the week ending January 20^th while analysts on average expected the increase of 700,000 barrels for the week.

Gasoline inventories declined by 573,000 barrels as compared to expected increase of 2.2 million barrels by analysts polled by Platts. Distillate inventories which include diesel and heating oil fell by 2.5 million barrels as per API data while analysts expected the decline of 300,000 barrels for the week.

Gasoline futures contract for February delivery gained 1 percent or $0.27 to settle at $2.81 per gallon while heating oil futures for the same month delivery surged 0.5 percent or $0.14 to $3.02 per gallon.

Natural gas futures also gained 1.2 percent or 1.2 percent to $2.55 per million British thermal units on NYMEX.