Crude Oil Soars To End Over $49 A Barrel, Gains 4.4% For Month

(RTTNews) - U.S. crude oil surged to end a near 9 percent high on Monday, after official data showed domestic output in the U.S. to have declined significantly, even as reports indicate concerns of the Organization of the Petroleum Exporting Countries over the steep fall in prices.

Oil prices found support after the Wall Street Journal reported Venezuela to be pursuing a meeting with OPEC partners to discuss prospects of a production cut to prop up prices. However, analysts believe the Middle East OPEC nations will want to keep production high and prices low to defend their market share.

OPEC voiced concerns over the pressure on prices, linked to higher crude production, market speculation, indicating it a cause of concern for members.

The U.S. Energy Information Administration in a report on Monday estimated June U.S. crude output at 9.3 million barrels a day, a decline of 1.1 percent from the revised May numbers.

Light Sweet Crude Oil futures for October delivery, the most actively traded contract, surged $3.98 or 8.8 percent, to settle at $49.20 a barrel on the New York Mercantile Exchange Monday.

Crude prices for October delivery scaled a high of $49.33 a barrel intraday and a low of $43.60.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 95.94 on Monday, down from its previous close of 95.98 in late North American trade on Friday. The dollar scaled a high of 96.25 intraday and a low of 95.62.

The euro trended higher against the dollar at $1.1226 on Monday, as compared to its previous close of $1.1185 in North American trade late Friday. The euro scaled a high of $1.1263 intraday and a low of $1.1182.

On the economic front, business activity in the Chicago area unexpectedly grew at a slower rate in August, a report from MNI Indicators on Monday. The Chicago business barometer dipped to 54.4 in August from 54.7 in July. While a reading above 50 indicates growth, economists had expected the index to inch up to 54.9.

China's trade deficit in services widened in July, the State Administration of Foreign Exchange said Monday. The deficit on trade in services increased to $17.6 billion in July from $14.9 billion in June. At the same time, the merchandise trade showed a surplus of $46 billion in July.

Eurozone inflation remained unchanged at a very low level in August as further fall in oil prices curbed its ability to move upward. Inflation came in at 0.2 percent in August, the same rate as seen in July and June, preliminary data from Eurostat showed Monday. It was forecast to ease to 0.1 percent.

Germany's retail sales rebounded in July to grow at the fastest pace in nine months, signaling that consumer spending boosted economic growth at the start of the third quarter. Retail sales advanced 1.4 percent on a monthly basis in July, Destatis reported Monday. This was the fastest growth since October 2014, when sales climbed 1.8 percent.