Crude Oil Ends Lower As Dollar Strengthens

(RTTNews) - U.S. crude oil slipped to end lower for a fourth straight session on Monday, as the dollar strengthened against some major currencies with fierce fighting in Iraq and Yemen renewing concerns of supply disruption from the region. However, fears of a U.S. shale production recovery limited gains made by crude oil.

A strong dollar normally discourages buying dollar-denominated commodities such as crude oil since they become more expensive to holders of foreign currencies.

In Iraq, the militant group Islamic State captured Ramadi, capital of the country's largest province, from government forces. The setback is seen as a major defeat for Iraqi government efforts.

In Yemen, after a five-day break in hostilities to facilitate humanitarian aid, Saudi Arabia-led coalition once again began targeting rebel areas in the beleaguered country.

With tensions in the Middle East threatening to destabilize the region's shipping routes, crude oil prices have rallied this month despite a global supply glut.

Light Sweet Crude Oil futures for June delivery, dropped $0.26 or 0.4 percent, to settle at $59.43 a barrel on the New York Mercantile Exchange Monday.

Crude prices for June delivery scaled a high of $60.88 a barrel intraday and a low of $59.06.

Light Sweet Crude Oil futures for July delivery, the most actively traded contract, dropped $0.30 or 0.4 percent, to settle at $60.24 a barrel on the New York Mercantile Exchange Monday.

Crude prices for June delivery scaled a high of $61.71 a barrel intraday and a low of $59.85.

On Friday, crude oil for June delivery dropped $0.19 or 0.3 percent, to settle at $59.69 a barrel, on supply glut worries with U.S. crude stockpiles still at 80-year highs, even as the dollar trended lower.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 94.17 on Monday, up from its previous close of 93.27 on Friday in late North American trade. The dollar scaled a high of 94.26 intraday and a low of 93.27.

The euro trended lower against the dollar at $1.1309 on Monday, as compared to its previous close of $1.1448 in North American trade late Friday. The euro scaled a high of $1.1449 intraday and a low of $1.1301.

On the economic front, homebuilder confidence in the U.S. deteriorated unexpectedly in May, a report from the National Association of Home Builders on Monday. The NAHB/Wells Fargo Housing Market Index dropped to 54 in May after climbing to 56 in April. Economists expected the housing market index to inch up to a reading of 57.

Reports on housing starts, existing home sales and consumer price inflation are likely to be in focus in the coming days, with investors likely to keep a close watch for minutes of the latest Fed meeting as well as a speech by Fed Chair Janet Yellen.

Meanwhile, German central bank Bundesbank in its monthly report said private consumption is set to drive Germany's growth in coming months and the construction activity likely will improve, while momentum in the industrial sector is likely to remain sluggish.

In the first quarter, German economic growth eased to 0.3 percent from 0.7 percent in the final three months of 2014.