By Virginia Harrison, MarketWatch
SYDNEY (MarketWatch) — Crude oil futures retreated in electronic trading Monday, paring sharp gains made in the previous session after Europe announced plans to stabilize its banking sector.
Crude for August delivery CLQ2 -1.30% lost $1.41, or 1.2%, to trade at $83.76 a barrel on the New York Mercantile Exchange during Asian trading hours.
Oil prices saw their largest one-day percentage gain since 2009 on Friday — rising more than 9% — as investors welcomed Europe’s bank plan. Read more on oil's Friday rally.
Equity markets rose in Asian trading hours on Monday, building on gains made Friday when Europe announced its bank supervisory system proposals. Read more on Asian shares
Data out Monday showed that the final reading of HSBC’s China manufacturing Purchasing Managers’ Index for June slipped to 48.2 from 48.4 in May, but exceeded a preliminary estimate of 48.1. Read more on China's PMI.
A rise in the dollar worked to pressure oil futures. The ICE dollar index DXY +0.22% , which measures the U.S. unit against a basket of six major currencies, rose to 81.789, from 81.658 in North American trade late Friday. Read more on currencies.
A stronger greenback can weigh on crude prices, as it makes the commodity more expensive to holders of other currencies.
Virginia Harrison is a MarketWatch reporter based in Sydney.
