Crude Oil Ends Below $100 A Barrel

(RTTNews) - U.S. crude oil ended sharply lower on Monday, after data from the U.S. showed pending home sales index rose less than expected, although it was the first increase in six months. Crude prices were additionally impacted after news reports indicated the Libyan scenario to be improving with shipments expected to begin soon.

The dollar weakened against a basket of major currencies, even as trading volumes remained very thin on expected lines due to New Year holidays.

Light Sweet Crude Oil futures for February delivery, the most actively traded contract, shed $1.03 or 1.0 percent to close at $99.29 a barrel on the New York Mercantile Exchange Monday.

Crude prices for February delivery scaled a high of $100.42 a barrel intraday and a low of $99.14.

Last week, oil settled above the $100-mark for the first time in over two months on improved demand outlook after the U.S. Federal Reserve decided to slash its monthly bond-buying program by $10 billion. The Fed expects to see sustained jobs creation and an uptick in the rate of inflation before further scaling back their unprecedented support measures. Any further reduction in the size of stimulus will be contingent on economic data.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.99 on Monday, down from its previous close of 80.34 late Friday in North American trade. The dollar scaled a high of 80.43 intraday and a low of 79.93.

The euro traded higher against the dollar at $1.3805 on Monday, as compared to its previous close of $1.3758 late Friday in North America. The euro scaled a high of $1.3820 intraday and a low of $1.3729.

In economic news from the U.S., the National Association of Realtors said its pending home sales index inched up 0.2 percent to 101.7 in November from a downwardly revised 101.5 in October. Economists expected the index to jump by about 1.5 percent. A pending home sale is one in which a contract is signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.

Despite the increase in jobless figures in November, the government maintained that unemployment is falling in France. Citing the data over several months, the ministry said the rising trend in unemployment has started to reverse in the fourth quarter.

From the Europe, Switzerland's current account surplus for the third quarter increased from the same period last year, data from the Swiss National Bank showed. The current account surplus rose to CHF 19.7 billion from CHF 13.7 billion in the same period a year ago. In the second quarter, the current account surplus was CHF 20.2 billion.