Crude Oil Ends Lower As Supply Fears Ease

(RTTNews) - U.S. crude oil ended lower for a third straight session on Monday, with easing concerns over disruption in supplies from the Middle East with Iraqi government forces beginning to make headway into territories held by Sunni rebels.

Crude oil futures added 2.6 percent for the month, and recorded a gain of 3.7 percent for the quarter.

Meanwhile, the leaders of an Al Qaeda splinter group that seized northern and western Iraqi territories have declared the establishment of an Islamic state. However, analysts say the insurgency will likely be confined to these areas and not spread south where most of Iraq's oil is produced.

Meanwhile, Libya's largest oil-export terminal may reopen in August after the North African nation's new parliament takes office, Bloomberg reports.

Light Sweet Crude Oil futures for August delivery, the most actively traded contract, shed $0.37 or 0.3 percent to close at $105.37 a barrel on the New York Mercantile Exchange Monday.

Crude prices for August delivery scaled a high of $105.76 a barrel intraday and a low of $104.66.

On Friday, crude oil futures ended lower on a strong dollar on diminishing fears of disruption of oil supplies from Iraq amid the sectarian violence the region.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.78 on Monday, down from its previous close of 80.02 late Friday in North American trade. The dollar scaled a high of 80.09 intraday and a low of 79.76.

The euro traded higher against the dollar at $1.3694 on Monday, as compared to its previous close of $1.3645 late Friday in North American trade. The euro scaled a high of $1.3697 intraday and a low of $1.3640.

In economic news from the U.S., a National Association of Realtors report on Monday showed its pending home sales index jumped 6.1 percent to 103.9 in May from 97.9 in April, while economists expected the index to rise by about 1.0 percent. A pending home sale is one in which a contract was signed but not yet closed, which normally takes four to six weeks.

Meanwhile, MNI said its Chicago business barometer fell to 62.6 in June from 65.5 in May. While a reading above 50 indicates continued growth, economists had expected the barometer to edge to down to 64.0. Despite the monthly decrease, the Chicago business barometer indicated the fourteenth consecutive month of growth and remained above 60 for the third month in a row.

German retail sales fell unexpectedly in May, data from the country's statistics office showed Monday. Sales on the month decreased by 0.6% in May in adjusted terms.

Eurozone inflation remained stable at 0.5 percent in June, flash estimate from Eurostat showed Monday. It was forecast to rise slightly to 0.6 percent.