RTTN:Crude Oil Ends Higher On Supply Concerns, Strong Dollar
U.S. crude oil settled higher Monday, mostly on supply concerns linked to the situation in the Middle East with news reports of a pipeline blast in Algeria. The continued clashes between protestors and police in Egypt stoked fears that oil transit through the country could be disrupted.
Investors also weighed some mixed macroeconomic data out of the U.S. with a Commerce Department report showing a better than expected increase in durable goods orders, largely offset by a National Association of Realtors report which indicated a sharp drop in pending home sales. Traders also await the outcome of the Federal Reserve's policy meet due later this week.
Light Sweet Crude Oil futures for March delivery, the most actively traded contract, gained $0.56 or 0.6 percent, to close at $96.44 a barrel on the New York Mercantile Exchange Monday.
Crude prices for March delivery scaled a high of $96.81 a barrel intraday and a low of $95.47.
Last week, oil settled steady near a 4-month high as demand growth concerns eased with some positive manufacturing data out of China, the world's second largest energy consumer. Oil prices also reacted to some upbeat macroeconomic data out of the U.S.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.82 on Monday, up from 79.74 late Friday in North American trade. The dollar scaled a high of 79.93 intraday and a low of 79.72.
The euro traded lower against the dollar at $1.3453 on Monday, as compared to $1.3462 late Friday in North America. The euro scaled a high of $1.3477 intraday and a low of $1.3426.
In economic news from the U.S., a Commerce Department report showed durable goods orders to have surged 4.6 percent in December following a 0.7 percent increase in November. Economists had been expecting orders to increase by about 1.6 percent. Excluding an 11.9 percent jump in orders for transportation equipment, durable goods orders increased by a more modest 1.3 percent in December compared to a 1.2 percent increase in November. Ex-transportation orders had been expected to edge up by 0.4 percent.
Separately, the National Association of Realtors said its pending home sales index fell 4.3 percent to 101.7 in December from 106.3 in November. Economists had expected the index to edge down by 0.3 percent.
Elsewhere, growth in the eurozone broad money aggregate or M3 slowed to 3.3 percent in December from 3.8 percent in November, data from the European Central Bank showed. Economists expected the rate of growth to accelerate to 3.9 percent. M1 or narrow money supply increased 6.2 percent in December compared to a year earlier.
Meanwhile, a leading indicator of the eurozone economy increased for the second successive month in December, driven mainly by improved consumer and business confidence, data from a survey by the Conference Board showed. The leading economic index increased 0.4 percent on a monthly basis to 105.5 in December after rising 0.6 percent in November. The coincident economic index, meanwhile, which measures the current situation, declined to 101.4 in December from 101.5 in the previous month.
