Investing.com – Crude oil futures pared a losses on Monday, bouncing off a four-month low as the euro turned higher against the U.S. dollar after European Union finance ministers agreed to increase the size of the region’s bailout fund.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in August traded at USD93.25 a barrel during U.S. morning trade, edging 0.15% lower.
It earlier fell as much as 1.78% to USD91.52 a barrel, the lowest price since February 21.
The euro erased losses against the U.S. dollar after EU finance ministers agreed to boost the effective lending capacity of the European Financial Stability Fund to EUR780 billion from the current level of EUR440 billion.
Meanwhile, Luxembourg’s finance minister Jean-Claude Juncker said earlier that Greek Prime Minister George Papandreou assured him that his government would do everything necessary to pass a new austerity package on Tuesday.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, erased gains to trade at 75.42, down 0.06%. It earlier rose by as much as 0.55% to hit a daily high of 75.95.
Dollar-denominated oil contracts become cheaper for holders of other currencies when the greenback weakens.
Meanwhile, concerns over a slowdown in demand from the U.S., the world’s largest oil consumer, weighed on prices.
The American Petroleum Institute said on Friday that U.S. crude supplies rose to 367.6 million barrels in May, the highest level in 31-years, as refineries processed less crude amid a decline in gasoline demand.
U.S. consumption of distillate fuel, which includes diesel and heating oil, fell 5.2% last week to the lowest since January, according to the U.S. Energy Department
Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery slumped 0.88% to trade at USD112.27 a barrel, up USD19.02 on its U.S. counterpart.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in August traded at USD93.25 a barrel during U.S. morning trade, edging 0.15% lower.
It earlier fell as much as 1.78% to USD91.52 a barrel, the lowest price since February 21.
The euro erased losses against the U.S. dollar after EU finance ministers agreed to boost the effective lending capacity of the European Financial Stability Fund to EUR780 billion from the current level of EUR440 billion.
Meanwhile, Luxembourg’s finance minister Jean-Claude Juncker said earlier that Greek Prime Minister George Papandreou assured him that his government would do everything necessary to pass a new austerity package on Tuesday.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, erased gains to trade at 75.42, down 0.06%. It earlier rose by as much as 0.55% to hit a daily high of 75.95.
Dollar-denominated oil contracts become cheaper for holders of other currencies when the greenback weakens.
Meanwhile, concerns over a slowdown in demand from the U.S., the world’s largest oil consumer, weighed on prices.
The American Petroleum Institute said on Friday that U.S. crude supplies rose to 367.6 million barrels in May, the highest level in 31-years, as refineries processed less crude amid a decline in gasoline demand.
U.S. consumption of distillate fuel, which includes diesel and heating oil, fell 5.2% last week to the lowest since January, according to the U.S. Energy Department
Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery slumped 0.88% to trade at USD112.27 a barrel, up USD19.02 on its U.S. counterpart.