Crude Oil Surges To End Above $46 A Barrel

(RTTNews) - U.S. crude oil futures ended lower on Monday, having plunged a near 5 percent in the previous session, on concerns over dwindling domestic output and declining rig counts for the last three weeks.

Oil drilling rig count in the U.S. dropped for a third straight week, with Baker Hughes Inc., in its weekly rig count on Friday, indicating U.S. rigs actively drilling for oil to have dropped by 8 to 644 rigs as of September 18. The total active rig count, including natural-gas rigs, was 842, down 6 rigs.

The U.S. Federal Reserve last Thursday decided to maintain its interest rates unchanged at near zero levels, on concerns over a global economic slowdown. However, indications were the Fed would up rates some time later this year, likely in December.

In economic news from the U.S., existing home sales fell much more than expected in August, a National Association of Realtors report showed Monday.

Light Sweet Crude Oil futures for October delivery jumped $1.89 or 3.2 percent, to settle at $46.68 a barrel on the New York Mercantile Exchange Monday.

Crude prices for October delivery scaled a high of $46.74 a barrel intraday and a low of $44.69.

On Friday, crude oil plunged $2.22 or 4.7 percent, to settle at $44.68 a barrel, on demand growth concerns amid speculation that OPEC will maintain production.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 95.88 on Monday, up from its previous close of 94.23 in late North American trade on Friday. The dollar scaled a high of 95.98 intraday and a low of 95.04.

The euro trended lower against the dollar at 1.1197 on Monday, as compared to its previous close of 1.1303 in North American trade late Friday. The euro scaled a high of 1.1331 intraday and a low of 1.1182.

On the economic front, existing home sales in the U.S. fell much more than expected in August, a from the National Association of Realtors on Monday. NAR said existing home sales tumbled by 4.8 percent to a seasonally adjusted annual rate of 5.31 million in August from a downwardly revised 5.58 million in July. Economists expected sales to dip to a rate of 5.50 million from the 5.59 million originally reported for the previous month.

German producer prices declined at a faster-than-expected pace in August, figures from Destatis showed Monday. Producer prices fell 1.7 percent year-over-year in August, following a 1.3 percent decrease in the previous month. Economists had forecast a 1.6 percent drop for the month. Producer prices have been falling since August 2013.

China's service sector strengthened in the third quarter but the manufacturing sector continued to remain weak, the China Beige Book survey published by CBB International revealed Monday. Capital expenditure strengthened in the third quarter, the survey results based on responses from more than 2,100 firms showed today. Meanwhile, property market still remained weak.