Crude Oil Ends Lower On Demand Growth Concerns

(RTTNews) - U.S. crude oil ended lower for a second straight session Monday, on demand growth concerns despite geopolitical tensions escalating in the Middle East and Ukraine. Some weak data out the U.S. and Europe also contributed to crude oil's slide, adding to worries over global supply outweighing demand.

Investors continued to mull over some recent soft economic data out of China and the resumption of oil shipments from Libya, with an oversupply situation looming ahead.

The situation in Ukraine continued to be in sharp focus, with Russia reported to have stated that it will send another convoy with humanitarian aid into Ukraine this week. Meanwhile, Ukraine has reportedly charged that Russian military vehicles have moved into eastern Ukraine this morning.

In Libya, armed militants have reportedly taken control of Tripoli's international airport, just as oil shipments from the nation have been picking up.

In some soft economic news from the U.S., sales of new single-family homes in July dropped to its lowest in four months. Meanwhile, German business sentiment weakened for a fourth consecutive month in August, its lowest level in over a year.

Light Sweet Crude Oil futures for October delivery, the most actively traded contract, dropped $0.30 or 0.3 percent to close at $93.35 a barrel on the New York Mercantile Exchange Monday.

Crude prices for October delivery scaled a high of $93.95 a barrel intraday and a low of $93.05.

On Friday, crude oil futures ended lower amid concerns over a likely fall in demand, notwithstanding some upbeat economic data out of the U.S. and a bigger than expected decline in U.S. crude oil stockpiles the week before.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 82.54 on Monday, down from its previous close of 82.61 late Friday in North American trade. The dollar scaled a high of 82.59 intraday and a low of 82.45.

The euro trended lower, dropping to a one-year low against the dollar at $1.3193 on Monday, as compared to its previous close of $1.3196 late Friday in North American trade. The euro scaled a high of $1.3210 intraday and a low of $1.3186.

In economic news from the U.S., sales of new single-family homes in July dropped 2.4 percent from June to a seasonally adjusted annual rate of 412,000, the Commerce Department said Monday.

It was the slowest pace of new home sales in four months, as demand was relatively weaker in all regions except the South. Economists expected a reading of 432,000. July sales were down 4.3 percent from a year earlier.

From Europe, German business sentiment weakened for the fourth consecutive month in August to its lowest level in a year, as the escalating crisis in Ukraine and the resultant sanctions against Russia pose downside risks to the economic activity.

The Ifo business climate index dropped to 106.3 in August, the lowest since July 2013, from 108 a month ago, a monthly survey conducted by the Ifo institute among 7,000 firms showed Monday. The indicator was forecast to drop to 107 in August.

Uncertainties over the rate hike continued, with the much anticipated speech by the U.S. Federal Reserve Chair Janet Yellen at the Jackson Hole Symposium last Friday did not provide any meaningful clue about the likely timing of a hike in interest rates.