Crude Oil Ends Lower On Concerns Over Greece, Iran Deal

(RTTNews) - U.S. crude oil ended lower for a third straight session on Friday, amid mounting concerns over Greece and the health of the global economy, even as the crucial Iran nuclear deal deadline nears with talks continuing in Vienna, Austria.

Some serious differences continue to hamper an agreement in the talks between Iran and six western powers, including U.N. access to Iranian nuclear sites and easing sanctions.

For the week, crude oil futures shed 0.6 percent.

Elsewhere, Chinese stocks plunged with the Shanghai Composite Index down 7.4 percent on speculation that equities were far too highly overvalued. The Shanghai market plummeted a near 20 percent from its recent highs, with Chinese start-ups surrendering a quarter of their value after having touched a record high earlier this month.

Meanwhile, Greece has been given a deadline of Monday to reach a deal with creditors, leaving much uncertainty heading into the weekend. Creditors have proposed a five-month extension to its current bailout program if Athens agrees to a set of reforms, reports said citing officials and leaked documents.

Under the new proposal, the massive EUR 240 billion bailout will be extended until end November, when a total EUR 12 billion aid will be offered. The current program is set to expire at the end of this month and extension could give Greece more time to hold negotiations with creditors to reach a feasible solution.

News reports said Greece may be given EUR 1.8 billion as the first tranche to meet a EUR 1.6 billion payment due to the International Monetary Fund on June 30. The disbursement will be possible only if the Greek parliament approves the proposal and adopts first set of reforms. The offer will also require approval from other eurozone parliaments.

With the Eurogroup meeting in Brussels on Thursday to discuss deal proposals Greece ended without a deal, the euro area finance ministers are now scheduled to hold their next session on Saturday. Eurogroup Chief Jeroen Dijsselbloem said the "door is still open" for Greece.

In economic news from the U.S., consumer sentiment in the U.S. improved much more than previously expected in June.

Light Sweet Crude Oil futures for August delivery, the most actively traded contract, fell $0.07 to settle at $59.63 a barrel on the New York Mercantile Exchange Friday.

Crude prices for August delivery scaled a high of $59.96 a barrel intraday and a low of $58.76.

On Thursday, crude oil for August delivery dropped $0.57 or 1.0 percent, to settle at $59.70 a barrel, as investors weighed demand growth prospects for oil with focus on developments in the Greece debt deal.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 95.44 on Friday, up from its previous close of 95.21 on Thursday in late North American trade. The dollar scaled a high of 95.67 intraday and a low of 95.08.

The euro trended lower against the dollar at $1.1164 on Friday, as compared to its previous close of $1.1206 in North American trade late Thursday. The euro scaled a high of $1.1221 intraday and a low of $1.1132.

On the economic front, consumer sentiment in the U.S. improved more than previously estimated in June, a report from the University of Michigan said Friday. The consumer sentiment index for June was upwardly revised to 96.1 from the mid-month reading of 94.6. Economists expected the index to be unrevised from the preliminary reading, which was already up sharply from the final May reading of 90.7.

France's consumer confidence held steady for the second straight month in June, survey data from the statistical office INSEE showed Friday. The consumer confidence came in at 94 in June, the same reading as in the previous two months. The May figure was revised from 93. Economists had expected the index to remain same at 93.

Germany's import prices dropped at a faster-than-expected pace in May, figures from Destatis showed Friday. Import prices slid 0.8 percent year-over-year in May, faster than previous month's 0.6 percent decrease. Economists had expected a 0.4 percent fall for the month.

The eurocoin indicator, which measures the current economic situation in the euro area, rose for the seventh consecutive month in June, a survey by the Bank of Italy and the Centre for Economic Policy Research showed Friday. The eurocoin indicator increased to 0.39 in June from 0.38 in the previous month. In April, the score was 0.33.

Eurozone banks lending to private sector in May grew at its fastest pace in more than three years, indicating demand for credit has also started to recover with economic growth. Loans to the private sector increased 0.5 percent in May from last year after staying flat in April and gaining 0.1 percent in March, the European Central Bank reported Friday. This was the fastest expansion since early 2012.

At the same time, the overall credit extended to the private sector increased 0.2 percent after remaining unchanged in April. Also, the rate of growth in credit to households accelerated to 0.9 percent.

House prices in England and Wales climbed at the slowest annual pace in seventeen months in May, figures from the Land Registry revealed Friday. The house price index rose 4.6 percent year-on-year following 5.1 percent gain in April. The latest increase was the smallest since December 2013, when prices increased 4.3 percent. House price inflation eased for the ninth successive month in May.