FX.co ★ Oil Futures Pare Early Gains, Settle Flat

Crude oil futures failed to hold early gains and settled flat on Tuesday as worries about outlook for energy demand dragged down prices from higher levels.

Crude oil prices climbed higher earlier in the session, extending gains from the previous session after the U.S. announced a plan to buy up to 3 million barrels of oil for the Strategic Petroleum Reserve.

The dollar's weakness contributed as well to oil's uptick. The dollar fell after the Bank of Japan said it would review its yield curve control policy and widened its target band for interest rates. Analysts are of the view that the move would allow long-term interest rates to rise more.

However, worries about the outlook for energy demand due to a surge in Covid-19 cases in China dragged down oil prices from the day's highs.

West Texas Intermediate Crude oil futures settled flat at $75.19 a barrel.

Brent crude futures settled at $79.99 a barrel, up $0.19 or about 0.2%.

Oil prices were also weighed a bit by a worsening outlook for a major U.S. winter storm, which threatens to force Americans to curb their travel plans during the holiday season.

Reports that TC Energy Corp is planning to restart the Keystone pipeline weighed as well on the commodity.