Crude Oil Ends Below $102 As Supply Concerns Ease

(RTTNews) - U.S. crude oil ended lower on Monday, after some disappointing pending home sales data from the U.S. and waning demand from Europe and Asia, even as investors await the Federal Reserve's monetary policy details later in the week.

Weak demand for crude oil in Europe and Asia, coupled with excess supply in the U.S. offset geopolitical tensions in Ukraine and the Middle East, with the Brent crude oil dipping below $108 a barrel.

In the Middle East, the 24-hour ceasefire seem to have come unstuck with reports of renewed fighting as both Israel and Hamas accused each other of violating the temporary truce.

Meanwhile, the U.N. Security Council has called for an an "immediate and unconditional" ceasefire in the Gaza Strip to enable delivery of urgently needed humanitarian assistance to the besieged Palestinian enclave.

The Security Council also urged all parties to accept and fully implement a ceasefire into the Eid period, marking the end of the Muslim fasting month of Ramadan and beyond.

In some disappointing economic news, a report from the National Association of Realtors on Monday showed pending home sales in the U.S. to have pulled back unexpectedly in June, after reporting a sharp jump in the previous month.

Light Sweet Crude Oil futures for September delivery, the most actively traded contract, dropped $0.42 or 0.4 percent to close at $101.67 a barrel on the New York Mercantile Exchange Monday.

Crude prices for September delivery scaled a high of $ 102.10 a barrel intraday and a low of $100.90.

On Friday, crude oil futures ended slightly higher on some upbeat data with better than expected orders for durable goods from the U.S. The developments in the Middle East and Ukraine also remained in focus.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.00 on Monday, down from its previous close of 81.04 late Friday in North American trade. The dollar scaled a high of 81.05 intraday and a low of 80.98.

The euro traded higher against the dollar at $1.3441 on Monday, as compared to its previous close of $1.3431 late Friday in North American trade. The euro scaled a high of $1.3444 intraday and a low of $1.3428.

In economic news from the U.S., a report from the National Association of Realtors on Monday showed pending home sales index dropped 1.1 percent to 102.7 in June after surging up by 6 percent to 103.8 in May. Economists expected sales to increase by another 0.5 percent.

A pending home sale is one in which a contract is signed but not closed. Normally, it takes four to six weeks to close a contracted sale.

The Fed will be out with its latest rate call on Wednesday, the highlight of a busy week that also includes the July non-farm payrolls report and U.S. GDP figures.