Crude Oil Ends Lower As Supply Glut Worries Persist

(RTTNews) - U.S. crude oil ended lower for a third straight session on Friday, as supply glut worries continued to plague markets with Iranian crude also expected to further deluge the already burgeoning supplies. Crude oil was also impacted by demand growth concerns after some disappointing economic data from China.

For the week, crude oil futures shed about 5.4 percent.

Investors also weighed some crucial economic data from China, with the country's manufacturing sector contracting at an accelerated pace once again in July, a survey from Caixin revealed on Friday.

Economic news from the U.S. also disappointed with new home sales unexpectedly pulling back in June, with sales falling to their lowest level in seven months, a Commerce Department release said on Friday.

Meanwhile, data from Baker Hughes Inc. on Friday showed the number of U.S. rigs actively drilling for oil rose by 21 units to 659 rigs as on July 24. However, total rig count fell by 1,007 when compared to last year.

Light Sweet Crude Oil futures for September delivery, the most actively traded contract, dropped $0.31 or 0.6 percent, to settle at $48.14 a barrel on the New York Mercantile Exchange Friday.

Crude prices for September delivery scaled a high of $49.03 a barrel intraday and a low of $47.72.

On Thursday, crude oil futures for September delivery fell $0.74 or 1.5 percent, to settle at $48.45 a barrel, on concerns of a supply glut with official data from the Energy Information Administration on Wednesday indicating a more than anticipated jump in U.S. crude stockpiles last week.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 97.27 on Friday, up from its previous close of 97.20 in late North American trade on Thursday. The dollar scaled a high of 97.62 intraday and a low of 97.12.

The euro trended lower against the dollar at $1.0982 on Friday, as compared to its previous close of $1.0984 in North American trade late Thursday. The euro scaled a high of $1.0997 intraday and a low of $1.0927.

On the economic front, new home sales in the U.S. unexpectedly pulled back in June, with sales falling to their lowest level in seven months, a Commerce Department report said Friday. New home sales tumbled 6.8 percent to an annual rate of 482,000 in June from the downwardly revised May rate of 517,000. Economists expected sales to edge up to 550,000 from the 546,000 originally reported for the previous month.

China's manufacturing sector contracted again in July and at an accelerated pace, a survey from Caixin revealed on Friday, with a flash PMI score of 48.2. That marked a 15-month low score, and was well shy of a forecast for 49.7.

Eurozone consumer confidence deteriorated at a faster-than-expected pace for a fourth straight month in July, preliminary estimates from the European Commission showed Thursday. The flash consumer confidence index dropped to -7.1 from -5.6 in June. Economists had forecast a score of -5.8.

Despite uncertain developments in Greece, Eurozone economic growth slowed only slightly in July as private sector activity rose at one of the strongest pace seen over the last four years, flash survey data from Markit Economics showed Friday. The Purchasing Managers' Index dropped to 53.7 in July from June's four-year high of 54.2. But it remained slightly above the average seen over the first half of the year. The expected score was 54.

Germany's private sector expanded at a slower pace in July, flash survey data from Markit Economics showed Friday. The flash composite output index dropped to 53.4 in July from 53.7 in June.

The French private sector growth slowed to a three-month low in July, flash survey data from Markit Economics showed Friday, with the composite output index falling to 51.5 in July from June's 46-month high of 53.3.

British households perceive that the value of their home increased in July, a survey from Knight Frank and Markit Economics showed Friday. The house price sentiment index, or HPSI, dropped to 58.6 in July from 59.5 in the previous month.

U.K. mortgage approvals increased for the sixth straight month to a 15-month high in June and came in above economist expectations, data from the British Bankers' Association showed Friday. The number of mortgage approvals rose to a seasonally adjusted 44,488 in June from 42,876 in April. It was forecast to rise to 43,300. The latest figure was the highest since March 2014, when approvals totaled 45,574.