Crude Oil Ends Lower With Kerry In Iraq

(RTTNews) - U.S. crude oil snapped a two-day gain to end lower Monday, on developments in Iraq with Secretary of State John Kerry in Baghdad for talks with political and religious leaders to tackle the ISIS threat. Nonetheless, the losses were limited after some upbeat economic data from the U.S. and China.

Worries over the escalating situation in Iraq, where militants have reportedly seized more cities in the northern part of the country, has given rise to concerns of disruption in oil supplies.

Meanwhile, U.S. Secretary of State John Kerry has had discussions with Iraqi Prime Minister Nouri al-Maliki as well as top Shia and Kurdish leaders to find ways to stop the onslaught from the ISIS al Qaeda-linked militants. Kerry is reported have stressed the need to form a unity government quickly involving all concerned, including Shias, Sunnis, and Kurds. It is also reported that al-Maliki has promised to initiate proceedings towards forming a unity government involving diverse communities beginning July.

Chinese manufacturing sector expanding for the first time in six months in June, driven by domestic and foreign orders even as the U.S. purchasing managers index rose to its best in over 4 years. As well, existing home sales in the U.S. increased much more than expected in May, data from the National Association of Realtors showed.

Light Sweet Crude Oil futures for August delivery, the most actively traded contract, shed $0.66 or 0.6 percent to close at $106.17 a barrel on the New York Mercantile Exchange Monday.

Crude prices for August delivery scaled a high of $107.45 a barrel intraday and a low of $105.91.

On Friday, crude oil futures for July ended higher on continued concerns of supply disruption following the developments in Iraq.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.29 on Monday, down from its previous close of 80.33 late Friday in North American trade. The dollar scaled a high of 80.40 intraday and a low of 80.24.

The euro traded higher against the dollar at $1.3603 on Monday, as compared to its previous close of $1.3590 late Friday in North American trade. The euro scaled a high of $1.3613 intraday and a low of $1.3574.

On the economic front, data from the National Association of Realtors showed U.S. existing home sales to have increased by a more than expected 4.9 percent to a seasonally adjusted 4.89 million in May, from an upwardly revised 4.66 million in April. The consensus estimate called for existing home sales to come in at a seasonally adjusted annual rate of 4.75 million units compared to a 4.65 million unit-annual rate in April.

Meanwhile, the Markit Economics flash manufacturing purchasing managers index for the U.S. came in with a reading of 57.5 for June, the best in over 4 years and up from a reading of 56.4 in May. Economists expected the index to rise to 56.5 in June.

In economic news from Asia, Markit said that Chinese manufacturing sector expanded for the first time in six months in June, with the HSBC flash manufacturing Purchasing Managers' Index rising to 50.8, from 49.4 in the previous month.

Meanwhile, eurozone private sector growth slowed for a second month running in June as downturn deepened in France. The headline index covering output of both manufacturing and services fell below forecast to 52.8 from 53.5 in May, flash survey data from Markit Economics showed.