Crude Oil Ends Higher On Optimism Over Greek Impasse

(RTTNews) - U.S. crude oil ended higher on Monday, as hopes of resolution to Greece's debt crisis brightened after eurozone leaders warmed up to Athens' new proposals submitted early Monday.

Oil prices moved over $60 a barrel as Greek officials prepared to meet with eurozone creditors in a last-ditch effort to avoid default on sovereign debt.

Hopes of an agreement between Greece and its international creditors later this week have greatly improved after Athens submitted a revised economic reform proposal early Monday. The Eurogroup has responded with optimism, suggesting that an end to a five-month long deadlock over releasing bailout aid to the cash-strapped country may be near.

Eurogroup President Jeroen Dijsselbloem Monday said the new proposals submitted by Greece were seen a 'positive step' in the path to reaching a deal with creditors and work will start immediately with the aim of reaching a final agreement later in the week.

Nonetheless, a global supply glut continues to weigh on prices, but there are more signs that U.S. production is waning. Rig counts are down and U.S. crude inventories have been falling steadily from record highs.

Light Sweet Crude Oil futures for August delivery, the most actively traded contract, gained $0.41 or 0.7 percent, to settle at $60.38 a barrel on the New York Mercantile Exchange Monday.

Crude prices for August delivery scaled a high of $60.63 a barrel intraday and a low of $59.27.

On Friday, crude oil for August delivery dropped $0.85 or 1.4 percent, to settle at $59.97 a barrel, on a strong dollar and investors anticipating a further increase in Saudi crude production. Investors also focused Greece with the crucial emergency summit meeting of eurozone leaders on Monday.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 94.32 on Monday, up from its previous close of 94.07 on Friday in late North American trade. The dollar scaled a high of 94.38 intraday and a low of 93.81.

The euro trended lower against the dollar at $1.1337 on Monday, as compared to its previous close of $1.1352 in North American trade late Friday. The euro scaled a high of $1.1411 intraday and a low of $1.1313.

On the economic front, existing home sales in the U.S. increased more than expected in May, with sales jumping to their highest level in nearly six years, a report from the National Association of Realtors showed Monday. Existing home sales in May surged 5.1 percent to an annual rate of 5.35 million from an upwardly revised 5.09 million in April. Economists expected sales to climb to an annual rate of 5.25 million from the 5.04 million originally reported for the previous month.

The Bank of Japan maintained its upbeat view on the economy saying the moderate recovery is expected to continue. In its monthly report on Monday, the BoJ said exports are expected to increase moderately, albeit with some fluctuations, mainly against the background of the recovery in overseas economies.