Crude Oil Ends Lower Amid Egypt Tensions

(RTTNews) - U.S. crude oil ended lower Monday, but above the $103 level, ahead of the weekly supply data even as the dollar weakened and the situation in Egypt threatening to further escalate. Oil prices scaled a 14-month high Friday with some upbeat jobs data and on fears of supply disruption through the Suez Canal amid intensifying tension in Egypt.

Light Sweet Crude Oil futures for August delivery, the most actively traded contract, dropped $0.08 to close at $103.14 a barrel on the New York Mercantile Exchange Monday.

Crude prices for August delivery scaled a high of $104.12 a barrel intraday and a low of $102.13.

Last week, oil advanced nearly 7 percent to hit a 14-month high amid concerns of supply disruption from the Middle East and Africa. Oil output in Libya fell drastically as protesters shut several oilfields, even as tensions escalated in Egypt following anti-government demonstrations with the army intervention imminent

The dollar index, which tracks the U.S. unit against six major currencies, traded at 84.18 on Monday, down from 84.45 late Friday in North American trade. The dollar scaled a high of 84.59 intraday and a low of 84.18.

The euro traded higher against the dollar at $1.2873 on Monday, as compared to $1.2811 late Friday in North America. The euro scaled a high of $1.2880 intraday and a low of $1.2812.

In economic news from the eurozone, German exports declined unexpectedly in May, while the growth in imports accelerated from the prior month, Destatis reported. Exports dropped 2.4 percent month-on-month, confounding expectations for a 0.1 percent rise. The decline in May revered 1.4 percent increase in April. Meanwhile, imports grew at a faster pace of 1.7 percent after rising 1.2 percent a month ago. It was forecast to remain flat in May.

Meanwhile, German industrial production declined more than expected in May due to notable decline in construction and energy output, the Federal Ministry of Economics and Technology said. Industrial output fell 1 percent in May from the previous month, the steepest since October 2012. Economists expected the production to fall 0.5 percent after rising 2 percent in April.

Eurozone investor confidence deteriorated in July after rising for two consecutive months, a survey by think-tank Sentix showed. The investor confidence index dropped to -12.6 in July from -11.6 in June, which was also worse-than the expected reading of -11.7.

Elsewhere in the eurozone, Greece reached an agreement with the European Union, the European Central Bank and the International Monetary Fund on economic reforms required for the next tranche of bailout fund, just hours ahead of the Eurogroup meeting Monday.

The troika agreed the macroeconomic outlook remains broadly in line with program projections, indicating prospects for a gradual return to growth in 2014 despite uncertain outlook. The eurozone ministers meeting in Brussels later in the day will formally decide on the next tranche of 8.1 billion euro aid to Greece. The funds are crucial for Athens to enable it repay bonds in August.

Also, focus will be on the crude oil inventories data from the API, due out Tuesday after the market hours, and the EIA due out the subsequent day.