Crude Ends Higher On Middle East Concerns

(RTTNews) - U.S. crude oil ended higher for a second straight session Monday, on some mixed macroeconomic data with investors weighing some soft Chinese gross domestic product data and the developments in Egypt that threatens to disrupt oil shipments from the Middle East. The Federal Reserve's assurance on its monetary stimulus support continues to be a catalyst for oil, even as the dollar traded higher against some major currencies.

China's economic growth slowed in the second quarter amid weaker industrial production and investment growth, the National Bureau of Statistics revealed Monday. The gross domestic product rose 7.5 percent year-on-year in the second quarter, in line with expectations. This was slower than the 7.7 percent growth recorded in the first three months of the year. In the first half of the year, GDP rose 7.6 percent compared with the same period last year.

A separate report from the statistical office showed industrial production in China grew 8.9 percent annually in June. This was weaker than the 9.2 percent growth in May and the 9.1 percent expansion forecast.

Light Sweet Crude Oil futures for August delivery, the most actively traded contract, gained $0.37 or 0.3 percent to close at $106.32 a barrel on the New York Mercantile Exchange Monday.

Crude prices for August delivery scaled a high of $106.48 a barrel intraday and a low of $104.65.

Last week, oil moved up nearly 3 percent to settle near a 16-month high, with the ongoing political turmoil in Egypt, fueling concerns the situation could disrupt oil shipments through the Suez Canal.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 83.08 on Monday, up from 82.94 late Thursday in North American trade. The dollar scaled a high of 83.46 intraday and a low of 82.88.

The euro traded lower against the dollar at $1.3069 on Monday, as compared to $1.3074 late Friday in North America. The euro scaled a high of $1.3081 intraday and a low of $1.2994.

In economic news, the U.S. Commerce Department said retail sales increased by 0.4 percent in June compared to a downwardly revised 0.5 percent increase in May. Economists had been expecting retail sales to jump by 0.8 percent compared to the 0.6 percent growth originally reported for the previous month. Excluding a notable increase in auto sales, retail sales came in unchanged in June versus economist estimates for a 0.5 percent increase.

Meanwhile, the Federal Reserve Bank of New York said its general business conditions index rose to 9.5 in July from 7.8 in June, with a positive reading indicating an increase in regional manufacturing activity. The increase surprised economists, who had been expecting the index to drop to 5.0.

Business inventories in the U.S. unexpectedly increased in May, a report from the Commerce Department showed Monday. Business inventories inched up by 0.1 percent in May following a downwardly revised 0.2 percent increase in April. Economists expected inventories to come in unchanged compared to the 0.3 percent increase originally reported for the previous month. The increase was attributed primarily to a 0.6 percent increase in retail inventories.

From the eurozone, the number of employees in the German manufacturing sector increased modestly in May, preliminary data released by the Federal Statistical Office showed. The number of persons employed in manufacturing units with 50 or more employees, increased 0.6 percent on an annual basis to 5.2 million in May.

Meanwhile, retail sales in China jumped an annual 13.3 percent, which is ahead of the expectations for a 12.9 percent increase.