Crude Oil Ends Lower On Weak Data

(RTTNews) - U.S. crude oil ended lower Monday, on some weaker than expected U.S. durable goods data for July, with the dollar trading higher against a basket of major currencies. Nonetheless, the drop in prices were limited on renewed hopes the Federal Reserve will maintain its bond-buying program, while investors await fresh triggers from this week's macroeconomic news.

New orders for U.S. manufactured durable goods declined much more than expected in July, a report from the Commerce Department showed Monday. The decline, which follows three consecutive months of increase, was attributed largely to a sharp pullback in orders for transportation equipment.

Light Sweet Crude Oil futures for October delivery, the most actively traded contract, shed $0.5 or 0.5 percent to close at $105.92 a barrel on the New York Mercantile Exchange Monday.

Crude prices for October delivery scaled a high of $107.37 a barrel intraday and a low of $105.56.

Last week, oil dipped to a fresh two-week low before recovering marginally after some better-than-expected manufacturing activity data from China improved demand growth outlook for oil. Additionally, official data showed crude inventories in the U.S. to have declined more than expected the week earlier.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.41 on Monday, up from 81.36 late Friday in North American trade. The dollar scaled a high of 81.51 intraday and a low of 81.27.

The euro traded lower against the dollar at $1.3371 on Monday, as compared to $1.3386 late Friday in North America. The euro scaled a high of $1.3393 intraday and a low of $1.3358.

In economic news from the U.S., the Commerce Department said durable goods orders tumbled by 7.3 percent in July following a 3.9 percent increase in June. Economists had expected orders to fall by about 4.0 percent. Excluding a pullback in orders for transportation equipment, durable goods orders fell by a more modest 0.6 percent in July compared to a 0.1 percent increase in the previous month.

Elsewhere, a leading indicator for eurozone's economic activity increased for a third consecutive month in July, signaling an improving economic outlook, the Conference Board said in a report. The leading economic index increased 1 percent month-on-month to 108.4 in July after a 0.4 percent rise in both June and May.

During the week, focus will be on consumer confidence readings for August by the Conference Board and Reuters and the University of Michigan, the National Association of Realtors' pending home sales index for July, the jobless claims report, the results of the ISM-Chicago's manufacturing survey for August and the Commerce Department's personal income and spending report for July.

Also in focus will be the crude oil inventories data from the API due Tuesday and the EIA report due Wednesday.