Crude Oil Ends Near $107 On Iraq Concerns

(RTTNews) - U.S. crude oil ended higher on Friday, amid concerns over possible supply disruptions from the Middle East due to the escalating tension in Iraq, with militants associated with al-Qaeda pushing toward the Iraqi capital of Baghdad. Recent data showing a notable drop in U.S. oil stockpiles also contributed to crude oil's meteoric rise.

Oil futures gained about 4.1 percent for the week -- the biggest weekly gain for the year.

In Iraq, the Sunni majority jihadists of the Islamic State in Iraq and Syria (ISIS) are reported to have advanced into Diyala province in the east which is close to the Iranian border. Meanwhile, reports say hundreds have been killed in the fighting as the ISIS took control of Mosul and Tikrit.

The ISIS militants are reportedly pushing toward Baghdad, even as Kurdish forces in the north took control of Kirkuk in an attempt to keep out the jihadists.

Investors largely ignored some soft economic news from the U.S. with a Thomson Reuters and the University of Michigan report showing an unexpected deterioration in consumer sentiment in June and producer prices in May dropping unexpectedly on a notable decline in prices for trade services.

Light Sweet Crude Oil futures for July delivery, the most actively traded contract, gained $0.38 or 0.4 percent to close at $106.91 a barrel on the New York Mercantile Exchange Friday.

Crude prices for July delivery scaled a high of $107.68 a barrel intraday and a low of $106.37.

On Thursday, crude oil futures surged to end at a nine-month high on concerns of supply disruptions from the Middle East after developments in Iraq.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.67 on Friday, up from its previous close of 80.59 late Thursday in North American trade. The dollar scaled a high of 80.71 intraday and a low of 80.44.

The euro traded lower against the dollar at $1.3531 on Friday, as compared to its previous close of $1.3552 late Thursday in North American trade. The euro scaled a high of $1.3580 intraday and a low of $1.3522.

In economic news from the U.S., a report from the Labor Department showed producer prices for trade services showed an unexpected 0.2 percent decrease in May, after climbing 0.6 percent in April. Economists expected prices to inch up by 0.1 percent. Excluding food and energy prices, core producer prices edged down by 0.1 percent in May following a 0.5 percent increase in April. Economists had expected core prices to tick up by 0.1 percent.

A Thomson Reuters and the University of Michigan report on Friday showed U.S. consumer sentiment in June deterioration unexpected with a preliminary reading coming in at 81.2 compared to the final May reading of 81.9. Economists expected the index to climb to a reading of 83.0.

The decrease was due partly to a drop in the gauge of consumer expectations, which dropped to 72.2 in June from 73.7 in May. The report also showed the barometer of current economic conditions to have inched up to 95.4 in June from 94.5 in the previous month.

Meanwhile, China's industrial production and retail sales growth accelerated in May, a sign the economy is well on its way to recovery. Industrial production grew at a pace of 8.8 percent year-on-year in May, following April's 8.7 percent increase, a report from the National Bureau of Statistics showed Friday. This was in line with economists' expectations.

China's Retail sales advanced by a more-than-expected 12.5 percent annually in May, faster than the 11.9 percent rise seen a month ago. Sales were expected to rise by 12.1 percent.