Crude Oil Ends Above $94 Amid Supply Concerns

(RTTNews) - U.S. crude oil ended sharply higher for a second straight session on Monday, after data from the U.S. showed consumer spending to have risen more than expected in August. Prices also found support over the upcoming temporary refinery closures to prepare for the winter. Prices were also under pressure after some unplanned refinery shutdowns in Canada and the U.S.

A report from the National Association of Realtors showed pending home sales in the U.S. to have dipped more than expected in August, somewhat offset with personal spending rising more than expected in August. A weak report on eurozone economic confidence and sluggish commodity prices are weighing as well.

Meanwhile, investors geared up for a busy week of U.S. economic data, with markets on the edge until Friday when the Labor Department releases its monthly jobs report.

U.S. employment rose by only 142,000 jobs in August, an alarming figure that raised questions about the health of the world's largest economy. Analysts expect the August lull was temporary, but investors are likely to take a cautious view in light of the start-and-stop nature of U.S. recovery.

Light Sweet Crude Oil futures for November delivery, the most actively traded contract, jumped $1.03 or 1.1 percent to close at $94.57 a barrel on the New York Mercantile Exchange Monday.

Crude prices for November delivery scaled a high of $94.64 a barrel intraday and a low of $92.74.

On Friday, crude oil ended higher after data from the U.S. showed the economy to have expanded more than previously estimated in the second quarter, notwithstanding concerns over supply disruptions from the Middle East with the U.S. and allies airstrikes against IS militants in Iraq and Syria.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 85.56 on Monday, down from its previous close of 85.68 late Friday in North American trade. The dollar scaled a high of 85.80 intraday and a low of 85.46.

The euro trended higher against the dollar at $1.2687 on Monday, as compared to its previous close of $1.2683 late Friday in North American trade. The euro scaled a high of $1.2715 intraday and a low of $1.2664.

In economic news from the U.S., data from the National Association of Realtors showed pending home sales to have pulled back much more than expected in August, falling 1.0 percent to 104.7, from 105.8 in July. Economists expected pending home sales to drop by about 0.5 percent.

A report from the U.S. Commerce Department said consumer spending was up by a more than expected 0.5 percent in August. Economists expected spending to increase by about 0.4 percent compared to the 0.1 percent drop originally reported for the previous month.

Meanwhile, personal income rose by an expected 0.3 percent in August after edging up by 0.2 percent in July.

In economic news from the eurozone, survey results from the European Commission showed economic confidence index to have slipped below its long-term average of 100 in September, dropping to 99.9, from 10.6 in August.

Meanwhile, German consumer price inflation remained stable at 0.8 percent in September, preliminary data from Destatis showed Monday. This was the lowest since February 2010, when prices climbed 0.5 percent and matched economists' expectations.

Several first-tier economic data are scheduled for release in the unfolding week, including the Labor Department's non-farm payrolls report for September.

ADP's private payrolls data for September, and the results of the Institute for Supply Management's manufacturing survey are also among the highly anticipated releases. Traders expect the data will be generally positive, putting further pressure on the Federal Reserve to raise interest rates ahead of schedule.