Oil retreats from $80
Investors eye supply data due Wednesday, as eight-day rally eases.
NEW YORK (CNNMoney.com) -- Oil edged off a peak just above $80 a barrel on Tuesday as investors an eight-day rally cooled.
U.S. crude for November delivery fell down 52 cents and settled at $79.09 a barrel, after reaching $80.05 earlier in the session.
Oil has ended higher for the past eight days, but analysts have questioned whether the recent rally is justified as crude market fundamentals remain weak. Supply has climbed steadily in recent months, while demand remains unclear pending a broader economic recovery.
Additionally, investors were looking ahead to an inventory report from the Energy Information Administration on Wednesday. Research group Platts predicted crude supplies increased by 2.2 million barrels last week.
Stocks tumbled in midday trading after DuPont (DD, Fortune 500) and Coca-Cola (KO, Fortune 500) reported weaker revenue that missed forecasts. Crude prices have tended to move in tandem with the stock market lately, because it is considered a barometer for the overall economy and a gauge for when oil demand will recover.
The currency market also pressured oil prices, as the dollar reversed direction to gain versus the euro and the yen. A firmer greenback tends to sink crude because oil is priced in dollars around the world.