Crude Oil Ends Higher On Ukraine Referendum

(RTTNews) - U.S. crude oil snapped a two-day loss to end higher on Monday, amid lingering concerns over the ongoing unrest in Ukraine with pro-Russian separatists claiming victory in the Sunday referendum, and the impasse in Libya over its oil shipments.

Pro-Russian separatists in the Donetsk region of eastern Ukraine claimed nearly 90 percent of voters in the region voted in favor of self rule in a referendum held on Sunday. Nonetheless, the vote has been condemned as illegal by Kiev and Western governments, although Moscow appear to challenge such claims by the west.

Meanwhile, the European Union refused to accept the results of the referendum and is reportedly considering imposing more sanctions on Russia.

Nonetheless, reports that Saudi Arabia may intervene to make good the shortages, limited the gains made by oil.

Uncertainty about oil shipments from Libya due to rebels in two of the port cities indicating their unwillingness to work with the new Libyan Prime Minister is also contributing to crude oil's gains.

Light Sweet Crude Oil futures for June delivery, the most actively traded contract, gained $0.60 or 0.6 percent to close at $100.59 a barrel on the New York Mercantile Exchange Monday.

Crude prices for June delivery scaled a high of $100.93 a barrel intraday and a low of $99.93.

Yesterday, crude oil ended lower as investors continued to mull over the supply scenario with fears of disruption in supply from Russia following the Ukraine crisis.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.89 on Monday, up from its previous close of 79.87 late Friday in North American trade. The dollar scaled a high of 79.92 intraday and a low of 79.78.

The euro traded higher against the dollar at $1.3759 on Monday, as compared to its previous close of $1.3754 late Friday in North America. The euro scaled a high of $1.3775 intraday and a low of $1.3750.

In economic news, the Confederation of British Industry on Monday upgraded U.K. economic outlook, as recovery continues to take hold and anticipates an interest rate hike in the first quarter of 2015. The business lobby has forecast 3 percent economic growth this year, up from a prior estimate of 2.6 percent. Likewise, growth for 2015 was lifted to 2.7 percent from 2.5 percent. The CBI estimates 8.3 percent rise in business investment this year and 9.1 percent in 2015.

China's bank lending remained below expectations, while money supply growth accelerated in April, data from the People's Bank of China showed Monday. Banks lent CNY 774.7 billion worth of loans in April, compared to CNY 1.05 trillion loans provided in March. This was also below the expected level of CNY 880 billion.