Crude Oil Ends Below $54 As Libya Supply Worries Fade

(RTTNews) - U.S. crude oil ended sharply lower on Monday, with investors brushing aside speculations that supply disruption from Libya could offset the global supply glut, after reports of a fire at oil-storage terminals.

The dollar's continued uptick against some major currencies, also contributed to the drop in oil prices.

Earlier, crude oil prices trended higher amid prospects of supply disruption from Libya where militants set fire to some oil tanks at the country's largest port, Es Sider, last week. According to reports, the fire has since been extinguished at three of the tanks.

Meanwhile, the Chinese central bank's decision to adjust rules for calculating bank deposits in order to increase liquidity also contributed to oil's turmoil.

Light Sweet Crude Oil futures for February delivery, the most actively traded contract, shed $1.12 or 2.0 percent to close at $53.61 a barrel on the New York Mercantile Exchange Monday.

Crude prices for February delivery scaled a high of $55.74 a barrel intraday and a low of $52.90.

On Friday, crude oil futures ended at $54.73 a barrel, down $1.11 or 2.0 percent.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 90.22 on Monday, up from its previous close of 90.05 late Friday in North American trade. The dollar scaled a high of 90.22 intraday and a low of 89.79.

The euro trended lower against the dollar at $1.2146 on Monday, as compared to its previous close of $1.2182 late Friday in North American trade. The euro scaled a high of $1.2220 intraday and a low of $1.2144.

In economic news, Switzerland's consumption indicator dropped slightly in November as fewer car sales weighed on spending, data from UBS showed Monday. The Swiss consumption index dropped to 1.29 in November from 1.32 in October. Although weak car sales were a drag on consumption, Christmas retail business has apparently made a good start.

Among data due this week are the consumer confidence index for December from the Conference Board, the weekly jobless claims, the National Association of Realtors' pending home sales index for November and the results of the Institute for Supply Management's national and MNI Indicators' regional manufacturing surveys.

The S&P Case-Shiller house price index for October, Markit's final U.S. manufacturing index for December and the Commerce Department's construction spending data for November will also be out during the course of the week.