Crude Oil Ends Slightly Lower On Strong Dollar

(RTTNews) - U.S. crude oil ended slightly lower on Friday, as the dollar trended higher against some major currencies even as investors awaiting this week's crude stockpiles report from the Energy Information Administration.

Oil prices ticked lower despite further stimulus measures from China in the form of a rate cut. China slashed interest rates for the third time since late last year, hoping to revive what was the world's fastest growing economy.

Tensions in the Middle East continued to put a floor under oil prices, but a staggering build in global inventories, particularly in the U.S., have kept prices in check. A strong U.S. jobs report Friday did little to boost oil prices.

China slashed interest rates over the weekend in a bid to boost lending to businesses, adding stimulus to a slowing economy. The bank had cut rates previously in March, having lowered its lending rate in November for the first time in more than two years.

The one-year lending rate would be reduced by 25 basis points, or a quarter of a percentage point, to 5.1 percent, officials said. The economic superpower that was once growing at a breakneck speed has slowed down sharply in recent months.

Meanwhile, concerns over the situation in Greece continued to weigh on investor sentiment, with Athens due to make a 750 million euro payment to the International Monetary Fund on Tuesday. Eurozone finance ministers are scheduled to meet in Brussels later today to consider the Greece's progress in the implementation of structural reforms in exchange for bailout funds.

Still, prices have surged from 6-year lows near $44 earlier in 2015.

Light Sweet Crude Oil futures for June delivery, the most actively traded contract, dropped $0.14 or 0.2 percent, to settle at $59.25 a barrel on the New York Mercantile Exchange Monday.

Crude prices for June delivery scaled a high of $59.85 a barrel intraday and a low of $58.75.

On Friday, crude oil gained $0.45 or 0.8 percent, to settle at $59.39 a barrel after data earlier in the week showed crude stockpiles to have declined and on some positive jobs data from the U.S. lifting demand growth prospects for oil.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 94.99 on Monday, up from its previous close of 94.87 on Friday in late North American trade. The dollar scaled a high of 95.26 intraday and a low of 94.80.

The euro trended lower against the dollar at $1.1153 on Monday, as compared to its previous close of $1.1204 in North American trade late Friday. The euro scaled a high of $1.1205 intraday and a low of $1.1132.

On the economic front, Germany's manufacturing turnover dropped for the second straight month in March, figures from Destatis showed Monday. Manufacturing turnover fell a seasonally and working-day-adjusted 1.0 percent month-over-month in March, faster than previous month's 0.8 percent decrease, which was revised from a 0.7 percent decline estimated earlier.

The Bank of England left its key record low interest rate and the size of the quantitative easing unchanged ahead of the publication of its latest quarterly update on inflation later this week, amid low inflation and signs of slowdown in the economy.

The Monetary Policy Committee, led by Bank of England Governor Mark Carney, decided on Monday to retain the key bank rate at 0.50 percent and the size of asset purchases at GBP 375 billion.

The People's Bank of China on Saturday cut both benchmark lending and deposit rates by 25 basis points to 5.1 percent and 2.25 percent, respectively. The latest reduction in interest rates is aimed at easing funding costs for businesses to promote economic development as the country continues to face relatively big downward pressure, the central bank said.

Consumer and manufacturing readings take the center stage in the unfolding week, as investors keep a close watch on each incoming economic evidences. The Commerce Department's retail sales report for April, the weekly jobless claims report and the results of the University of Michigan's consumer sentiment index for May are on tap.