Oil prices drop on rising dollar

Oil prices ended lower on Tuesday as the U.S. dollar's strength dampened investors' commodity appetite.

The U.S. dollar rose against most major currencies on Tuesday as retail sales data from the country came out positive. The dollar index, which measures the greenback against six major peers, was up 0.56 percent at 94.891 in late New York trading.

A stronger U.S. dollar weighed on investor sentiment, which made the dollar-denominated oil less attractive for buyers of other currencies.

Moreover, the oil prices were under pressure after data showed U.S. rig count increased for a second straight week.

Oilfield services company Baker Hughes said Friday that the number of rigs operating in U.S. fields rose by three to 328 in the week ending June 10, after nine were added the week before. At the same time last year, drillers had 635 oil rigs online.

The West Texas Intermediate for July delivery lost 39 cents to settle at 48.49 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for August delivery decreased 52 cents to close at 49.83 dollars a barrel on the London ICE Futures Exchange. Endit