Crude Oil Ends Lower On Demand Growth Concerns; Sheds 1.6% For Week

(RTTNews) - U.S. crude oil ended lower on Friday, with investors tracking declining equity markets while weighing demand growth prospects for oil after a more-than-expected jump in U.S. stockpiles last week and some mixed economic data.

Investors also continued to keep a close watch over developments in eastern Ukraine, even as clashes were reported between pro-Russian separatists and government forces.

Crude oil prices shed 1.6 percent for the week, while recording a 3 percent gain for the month.

Light Sweet Crude Oil futures for July delivery, the most actively traded contract, dropped $0.87 or 0.8 percent to close at $102.71 a barrel on the New York Mercantile Exchange Friday.

Crude prices for July delivery scaled a high of $103.56 a barrel intraday and a low of $102.40.

On Thursday, crude oil futures ended sharply higher, after scaling a high of $103.94 a barrel intraday, notwithstanding a better-than-expected jump in inventories.

U.S. commercial crude inventories increased by 1.7 million barrels last week, and are now in the upper half of the five-year range for this time of the year, the U.S. Energy Information Administration said yesterday.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.35 on Friday, down from its previous close of 80.50 late Thursday in North American trade. The dollar scaled a high of 80.50 intraday and a low of 80.31.

The euro traded higher against the dollar at $1.3638 on Friday, as compared to its previous close of $1.3602 late Thursday in North American trade. The euro scaled a high of $1.3650 intraday and a low of $1.3600.

In economic news from the U.S., data from the Commerce Department showed consumer spending to have declined by a seasonally adjusted 0.1 percent in April. Meanwhile, personal income rose 0.3 percent in April as expected, rising for the fourth straight month. Economists expected spending to rise by 0.2 percent compared to the 0.9 percent increase originally reported for the previous month.

A report from MNI Indicators, showed Chicago-area business activity unexpectedly rose to a seven-month high in May, climbing to 65.5, from 63.0 in April. The increase surprised economists, who had expected the barometer to dip to 61.0.

Thomson Reuters and the University of Michigan also released a report showing a slight upward revision to their reading on consumer sentiment in May. The final reading on the consumer sentiment index for May came in at 81.9, reflecting a modest upward revision from the mid-month reading of 81.8. Nonetheless, the index remained well below the final April reading of 84.1 and short of economist estimates of 82.5.