Crude Oil Ends Lower As Dollar Strengthens

(RTTNews) - U.S. crude oil edged down for a second straight session to end lower on Monday, with the dollar trending lower against some select currencies. Nonetheless, the losses were limited on some upbeat Chinese factory data and buoyant global equity markets, with supply concerns from Ukraine and Libya also continuing to support oil prices.

Figures released overnight showed China's factory activity expanded at its quickest pace in five months. However, Japan's manufacturing output declined for the second consecutive month in May, while the U.S. manufacturing sector grew at its fastest this year albeit less than expected.

Light Sweet Crude Oil futures for July delivery, the most actively traded contract, dropped $0.24 or 0.2 percent to close at $102.47 a barrel on the New York Mercantile Exchange Monday.

Crude prices for July delivery scaled a high of $103.35 a barrel intraday and a low of $102.10.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.62 on Monday, up from its previous close of 80.39 late Thursday in North American trade. The dollar scaled a high of 80.68 intraday and a low of 80.39.

The euro traded lower against the dollar at $1.3601 on Monday, as compared to its previous close of $1.3636 late Friday in North American trade. The euro scaled a high of $1.3640 intraday and a low of $1.3588.

In economic news, U.S. manufacturing sector in May grew at its fastest pace this year, with the purchase managers index rising to 55.4 percent from 54.9 percent in April, according to a report from the Institute for Supply Management. Economists expected the index at 55.8 percent for May.

Construction spending in the U.S. rose less than expected in April, with spending edging up 0.2 percent to an annual rate of $953.5 billion from the revised March estimate of $951.6 billion. Economists expected spending to increase by about 0.6 percent. Nonetheless, the report also showed notable upward revisions to the spending seen in the two previous months. Construction spending rose 0.6 percent in March and 0.4 percent in February.

Showing signs of a stabilizing economy, China's manufacturing sector growth accelerated in May, to its highest level this year, data from the National Bureau of Statistics and the China Federation of Logistics and Purchasing showed Sunday. China's purchasing managers' index for May improved to 50.8 from 50.4 in April, showing signs of a pickup in the manufacturing sector and the economy -- the third consecutive monthly growth.

Germany's inflation slowed more than expected in May to its lowest since June 2010, flash estimates published by Destatis revealed Monday. Inflation, based on the consumer price index, dropped to 0.9 percent in May, the level last seen in June 2010, from 1.3 percent in April. This was also below the expected rate of 1.1 percent.

The harmonized index of consumer prices rose only 0.6 percent on a yearly basis in May. Inflation was expected to slow marginally to 1 percent from 1.1 percent seen in April. Month-on-month, consumer prices were down 0.1 percent, against expectations for a 0.1 percent rise. Similarly, harmonized prices slipped 0.3 percent, instead of a 0.1 percent rise forecast by economists.