U.S. crude oil declined for a fourth straight session to end lower on Monday, on continued demand growth concerns amid fears of a supply glut, further escalated by some disappointing economic data from the U.S.
Crude oil also came under pressure after remarks by the Chinese Finance Minister Lou Jiwei, who said the Beijing government is unlikely to make major policy changes despite downward pressure on economic growth. China is the second largest energy consumer in the world.
In some disappointing economic data from the U.S., existing home sales unexpectedly dropped, while the Chicago Fed’s national activity index also declined. Meanwhile, eurozone consumer confidence dropped for a fourth month in September to its lowest since February, a report from the European Commission showed Monday.
Light Sweet Crude Oil futures for October delivery, the most actively traded contract, shed $0.89 or 1.0 percent to close at $91.52 a barrel on the New York Mercantile Exchange Monday.
Crude prices for October delivery scaled a high of $92.64 a barrel intraday and a low of $91.20.
On Friday, crude oil futures ended lower with the dollar strengthening against some major currencies.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 84.75 on Monday, up from its previous close of 84.74 late Friday in North American trade. The dollar scaled a high of 84.86 intraday and a low of 84.52.
The euro trended lower against the dollar at $1.2827 on Monday, as compared to its previous close of $1.2939 late Friday in North American trade. The euro scaled a high of $1.2868 intraday and a low of $1.2818.
In economic news from the U.S., data from Chicago Federal Reserve showed economic activity weakened in August, with the Chicago Fed’s national activity index declining to -0.21 in the month, down from a positive reading of 0.26 in the previous month.
Meanwhile, according to a report from the National Association of Realtors, U.S. existing home sales unexpectedly dropped 1.8 percent to a seasonally adjusted 5.05 million in August, from a downwardly revised 5.14 million in July. Economists expected existing home sales to climb to an annual rate of 5.18 million from the 5.15 million originally reported for the previous month.
Eurozone consumer confidence dropped for a fourth month in September to its lowest since February, preliminary data from the European Commission showed Monday. The flash consumer confidence indicator for the euro area dropped to -11.4 from -10 in August. The reading was below economists’ consensus of -10.5.
Meanwhile, Bundesbank said German industrial production in July with output growing 1.9 percent, the most since March 2012. The growth was reportedly was largely influenced by the timing of school holidays., which were concentrated in August this year, the central bank said in its monthly report on Monday.
The material has been provided by InstaForex Company – www.instaforex.com