Crude Oil Ends Above $98 As Geopolitical Tensions Ease

(RTTNews) - U.S. crude oil ended higher for a third straight session Friday, ahead of the official crude supply data due later in the week, with investors cautious while continuing to monitor developments in the ongoing geopolitical tensions in Ukraine, Iraq and Gaza.

Concerns over Ukraine eased a bit last after news reports indicated Russia to have concluded its military exercises along the border with eastern Ukraine, sending back its troops to their respective bases permanently. With pro-Russian militants' offering a ceasefire, tensions eased somewhat though the Ukrainian forces intensifying their attack on rebels positions could not be ruled out.

Meanwhile, a fresh three-day truce is on in Gaza with the concerned parties agreeing to have talks in Cairo over a possible resolution to the conflict.

Light Sweet Crude Oil futures for September delivery, the most actively traded contract, gained $0.43 or 0.4 percent to close at $98.08 a barrel on the New York Mercantile Exchange Monday.

Crude prices for September delivery scaled a high of $98.58 a barrel intraday and a low of $97.37.

On Friday, crude oil futures ended higher amid concerns over possible supply disruptions from the Middle East and on escalating tensions in Ukraine and Iraq.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.45 on Monday, up from its previous close of 81.40 late Friday in North American trade. The dollar scaled a high of 81.49 intraday and a low of 81.40.

The euro traded lower against the dollar at $1.3387 on Monday, as compared to its previous close of $1.3409 late Friday in North American trade. The euro scaled a high of $1.3411 intraday and a low of $1.3380.

In economic news, the Organization for Economic Cooperation and Development said its composite leading index points to stable growth momentum in the region. The composite leading indicators, designed to anticipate turning points in economic activity relative to trend, remained unchanged at 100.5 in June.

The indicators for the United States and Canada also continue to point to stable growth momentum. This is the case for the United Kingdom as well, where the growth momentum remains above-trend rates, it said.

Japan's consumer confidence improved for the third consecutive month in July, data from the Cabinet Office showed Monday. The consumer confidence index rose to 41.5 in July from 41.1 in June.

Meanwhile, Russia's economy grew more than expected in the second quarter, but the rate of growth eased marginally, data showed Monday. Gross domestic product rose 0.8 percent from last year, after expanding 0.9 percent in the first quarter, data from the Federal Statistics Service revealed. It was forecast to grow by 0.7 percent.

Investors will be looking ahead to some Fed speeches and data on U.S. retail sales and consumer sentiment during this week. The U.S. Commerce Department's data on business inventories, data on import and export prices from the Labor Department are due.

Also due this week are the Federal Reserve's industrial production report for July, the results of New York Federal Reserve's manufacturing survey and weekly jobless claims data.