Crude Oil Ends Near $93 On Demand Growth Concerns

(RTTNews) - U.S. crude oil pared gains to end sharply lower Monday, on demand growth concerns as the supply scenario remained fluid after Saudi Arabia increased its oil production and exports, with September shipments scaling an eight-year high. Investors also weighed some wide-ranging reforms announced by China after its Plenum meet and the upcoming talks between Iran and western powers on the Middle East country's nuclear program.

Meanwhile, Philadelphia Federal Reserve President Charles Plosser, said the Fed should end its monthly bond-buying program with the U.S. economy likely to clock a 3 percent growth in 2014. Speaking to the Risk Management Association, Plosser opined the unemployment rate would likely drop to 6.25 percent end 2014, and the Fed should declare the quantum of assets it proposes to buy and then end the program accordingly.

As well, the New York Federal Reserve President William Dudley speaking at Queens College, indicated that he believed the economy would do well over the next two years, setting off concerns the central bank would begin tapering its monetary stimulus program soon.

A report from Saudi Arabia's Joint Organizations Data Initiative showed the country's oil production in September at about 10.12 million barrels a day with shipments of about 7.84 million barrels.

Light Sweet Crude Oil futures for December delivery, the most actively traded contract, dropped $0.81 or 0.9 percent to close at $93.03 a barrel on the New York Mercantile Exchange Monday.

Crude prices for December delivery scaled a high of $94.30 a barrel intraday and a low of $92.72.

Last week, oil settled lower amid demand worries after both the Organization of the Petroleum Exporting Countries and the International Energy Agency painted a brighter supply outlook for crude oil.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.77 on Monday, down from 80.81 late Monday in North American trade. The dollar scaled a high of 80.92 intraday and a low of 80.57.

The euro traded higher against the dollar at $1.3501 on Monday, as compared to its previous close of $1.3497 late Friday in North America. The euro scaled a high of $1.3541 intraday and a low of $1.3476.

In economic news from the U.S., a report released by the National Association of Home Builders revealed the NAHB/Wells Fargo Housing Market Index at 54 in November, unchanged from the revised reading for October. Economists expected the index to come in unchanged compared to the 55 originally reported for the previous month.

Elsewhere, euro area current account surplus declined to a seasonally adjusted EUR 13.7 billion in September from EUR 17.9 billion in August, the European Central Bank reported. Surplus on goods trade decreased to EUR 13.7 billion from EUR 14.7 billion in August. Likewise, the surplus on services dropped to EUR 7.6 billion in September from EUR 8.2 billion.

Meanwhile, eurozone foreign trade surplus increased markedly in September, data from the statistical office Eurostat showed. The region's trade in goods with the rest of the world resulted in a surplus of EUR 13.1 billion in September, up from EUR 6.9 billion surplus in August. A year earlier, the surplus amounted to 8.6 billion.

During this week, focus will be on the National Association of Realtors' existing home sales report for October, the Commerce Department's retail sales report for October, the FOMC minutes and the results of the November manufacturing survey by the Philadelphia Federal Reserve.

Investors will also be focused on crude oil inventories data from the American Petroleum Institute due Tuesday, and the official Energy Information Administration weekly oil report on Wednesday.