Crude Oil Ends Below $60 A Barrel, But Gains 1.4% For Week

(RTTNews) - U.S. crude oil ended lower for a second straight session on Friday, as the Organization of the Petroleum Exporting Countries continued to raise output levels even as U.S. stocks start to drop. The decline comes even as the dollar dropped after continuing to fluctuate against a select band of currencies for much of the session.

Nevertheless, oil futures gained about 1.4 percent for the week.

Traders remained skeptical of the long-term outlook for crude oil prices, given the global supply glut. While U.S. stockpiles start to dwindle a bit, OPEC continues to pump oil at a breakneck pace. OPEC supplies reached its highest level since August 2012 in May, according to the latest oil market report from the International Energy Agency (IEA).

Meanwhile, data from Baker Hughes Inc. on Friday showed the number of U.S. rigs actively drilling for oil dropped by 7 units to 635 rigs as on June 12, registering a 27th consecutive week of decline. The total active rig count was at 859, a decline of 9 units from last week.

Investors also mulled over the developments in Europe, with the International Monetary Fund pulling out of talks with Greece, blaming Athens for the lack of progress. Greece's international creditors remain frustrated over the governments response to its debt crisis, with the onus now on Greece to do more to unlock bailout funds before its euro-area bailout package expires on June 30.

Light Sweet Crude Oil futures for July delivery, the most actively traded contract, shed $0.81 or 1.3 percent, to settle at $59.96 a barrel on the New York Mercantile Exchange Friday.

Crude prices for July delivery scaled a high of $60.63 a barrel intraday and a low of $59.73.

On Thursday, crude oil dropped $0.66 or 1.1 percent, to settle at $60.77 a barrel, as the dollar strengthened after some upbeat U.S. retail sales data for May, and on the International Energy Agency's demand growth and supply outlook for oil.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 94.94 on Friday, down from its previous close of 95.10 on Thursday in late North American trade. The dollar scaled a high of 95.68 intraday and a low of 94.69.

The euro trended higher against the dollar at $1.1264 on Friday, as compared to its previous close of $1.1258 in North American trade late Thursday. The euro scaled a high of $1.1296 intraday and a low of $1.1152.

On the economic front, producer prices in the U.S. rose slightly more than anticipated in May, with the price growth largely reflecting a substantial rebound in energy prices, a report from the Labor Department showed Friday. Producer price index for final demand rose by 0.5 percent in May following a 0.4 percent drop in April. Economists expected prices to increase by 0.4 percent.

Consumer sentiment in the U.S. improved much more than anticipated in June, a report from the University of Michigan said Friday. A preliminary reading on the consumer sentiment index for June came in at 94.6 compared to the final May reading of 90.7. Economists expected the index to increase modestly to 91.2.

Eurozone industrial production grew only marginally in April as energy and consumer goods output remained weak, signaling that economic recovery is set to slow in the second quarter. Industrial production edged up 0.1 percent month-on-month, rebounding from a 0.4 percent fall in March, figures from the Eurostat showed Friday. Economists had expected 0.4 percent growth.

Germany's wholesale prices continued to decline in May, but at a slower pace than in the prior month, figures from Destatis showed Friday. Wholesale prices fell 0.4 percent year-over-year in May, following a 0.9 percent decrease in April. The measure has been falling since July 2013.

U.K. construction output declined unexpectedly in April after rebounding in the prior month, the Office for National Statistics said Friday. Construction output fell 0.8 percent from March when it grew 1.4 percent. Output has so far dropped for three months this year. It was expected to rise 0.1 percent.