Oil edged down to about $73 a barrel on Tuesday, after rising for three straight sessions to settle at a seven-week high the previous day, buoyed by a weak dollar and optimism over the pace of global economic recovery. With earnings from a number of major US firms this week, the market is likely to take trading cues from Wall Street, which some investors expect to continue a winning streak.
A monthly report by producer group Opec, due later in the day, could also offer clues on the outlook for global oil demand. US crude for November delivery fell 28 cents to $72.99 by 0620 GMT, after settling 2.1 percent higher at $73.27 on Monday. London Brent crude lost 19 cents to $71.17.
The National Weather Service said total US heating demand will be higher than normal this week as the first seasonal wave of cold weather hits the Northeast and Midwest. Oil was also supported by a strong Australian dollar and buoyant Asian equity markets. Further support came from a fall in the greenback as investors positioned ahead of US corporate earnings later this week on expectations that strong results would bolster risk tolerance and high-yielding currencies.
Some of the biggest US corporate names are scheduled to report results this week, a reality check for whether the seven-month rally in stocks this year has further to run. The S&P 500 managed a sixth consecutive day of gains on Monday to end at its closing high for the year, but the Dow and Nasdaq ended little changed as investors opted to lock in profits before the earnings season began in earnest.