Crude Oil Ends Below $49 As Supply Glut Concerns Persist

(RTTNews) - U.S. crude oil plummeted to end sharply lower for a fourth straight session on Monday, as concerns of oversupply firmed, even as data showed a slowdown in the decline of rigs actively drilling for oil.

With Libya's major oil shipment port at Zueitina in the east restarting operations and the Sarir oilfield resuming operations after a pipeline blast last week, oil futures found little or no support to move upward.

The month-long strike by workers of 12 refineries also did little to support oil prices, with most refineries on the verge of initiating their spring maintenance period.

Crude oil prices tumbled on signs that major producers will continue to persist with the price war. Markets are exceedingly oversupplied, as confirmed by U.S. crude oil inventory figures showing a massive build in stockpiles.

With much of the nation slowing down due to subzero temps, inventories are expected to continue to build as OPEC and non-OPEC suppliers refrain from cutting production.

A stronger dollar also kept crude oil prices lower, although crude remains well off a 6-year low near $44 set earlier in 2015.

Traders in dollar-sensitive commodities are now looking ahead to Fed Chair Janet Yellen's semi-annual Congressional testimony on monetary policy for cues about possible interest rate hikes.

Light Sweet Crude Oil futures for April delivery, the most actively traded contract, tumbled $1.36 or 2.7 percent to settle at $49.45 a barrel on the New York Mercantile Exchange Monday.

Crude prices for April delivery scaled a high of $50.99 a barrel intraday and a low of $48.67.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 94.60 on Monday, up from its previous close of 94.31 on Friday in late North American trade. The dollar scaled a high of 94.92 intraday and a low of 94.28.

The euro trended lower against the dollar at $1.1333 on Monday, as compared to its previous close of $1.1381 on Friday in late North American trade. The euro scaled a high of $1.1395 intraday and a low of $1.1296.

On the economic front, existing home sales in the U.S. fell more than anticipated in January, a report from the National Association of Realtors showed Monday. Existing home sales tumbled 4.9 percent to an annual rate of 4.82 million in January from an upwardly revised 5.07 million in December. Economists expected sales to fall to a rate of 4.95 million from the 5.04 million originally reported for the previous month.

German business confidence improved for a fourth consecutive month in February to its highest level in seven months, but the pace of strengthening was modest amid concerns over the uncertainty surrounding the Greek situation. The Ifo Business Climate in February climbed to 106.8 from January's 106.7. Economists had forecast a stronger score of 107.6. The latest reading, however, was the best since July last year, when it was 108.1.

British retail sales growth eased sharply in February to its weakest level since late 2013, after six months of robust performance, survey data from the Confederation of British Industry revealed Monday. The balance of the CBI's distributive trades survey dropped to +1 from +39 in January. Economists were looking for a figure of +35.