Crude Oil Slips To End Below $58 A Barrel

(RTTNews) - U.S. crude oil ended lower for a second straight session on Monday, after some weak manufacturing activity report from China in April dulled demand growth prospects, even as the dollar trending higher on some upbeat U.S. factory orders report.

Nonetheless, crude oil prices pared much of the losses on signs that U.S. shale producers are abandoning projects.

OPEC continues to refuse any cut in production despite a glut in global supplies, pressuring U.S. oil companies with tighter margins to shutter some rigs until prices rebound even more.

Tensions in the Middle East centered around the civil war in Yemen and dollar's pullback have also provided prices a boost. Crude oil was up 21 percent in April but remains sharply lower compared to a year ago.

In economic news, the manufacturing sector in China slipped further into contraction in April, a revised survey from HSBC Bank showed on Monday, while a Commerce Department report showed a sharp increase in new orders for U.S. manufactured goods in March.

Light Sweet Crude Oil futures for June delivery, the most actively traded contract, dropped $0.22 or 0.4 percent, to settle at $58.93 a barrel on the New York Mercantile Exchange Monday.

Crude prices for June delivery scaled a high of $59.73 a barrel intraday and a low of $58.45.

On Friday, crude oil dropped $0.48 or 0.8 percent, to settle at $59.15 a barrel, after reports said crude shipments from Iraq scaled at a record high, with the output from OPEC at its highest since late 2012.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 95.50 on Monday, up from its previous close of 95.28 on Friday in late North American trade. The dollar scaled a high of 95.64 intraday and a low of 94.04.

The euro trended lower against the dollar at $1.1135 on Monday, as compared to its previous close of $1.1199 in North American trade late Friday. The euro scaled a high of $1.1225 intraday and a low of $1.1123.

On the economic front, a Commerce Department report Monday showed a sharp increase in new orders for U.S. manufactured goods in March, reflecting a notable rebound in orders for transportation equipment. U.S. factory orders surged 2.1 percent in March following a revised 0.1 percent decrease in February. Economists expected orders to increase by about 2.0 percent compared to the 0.2 percent uptick in the previous month.

The manufacturing sector in China slipped further into contraction territory in April, a revised survey from HSBC Bank showed on Monday, with a PMI score of 48.9. That missed the forecast of 49.4, and down from last month's preliminary reading of 49.2.

The eurozone manufacturing sector expanded slightly more than initially estimated in April, final data from Markit showed Monday. The Purchasing Managers' Index dropped to 52 in April from 52.2 in March. But it was above the flash score of 51.9.

Eurozone investor confidence weakened slightly in May, survey data from the think tank Sentix revealed Monday. The investor confidence index dropped to 19.6 from 20 in April, which was the highest score since August 2007. It was forecast to drop to 19.3.