Investing.com - U.S. oil futures trimmed gains on Monday, after the International Monetary Fund cut its forecast for U.S. economic growth this year.
On the New York Mercantile Exchange, crude oil for delivery in August rose 0.16%, or 17 cents, to trade at $106.34 a barrel during U.S. morning hours. Nymex oil hit $107.68 on Friday, the most since September 19, 2013.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for August delivery tacked on 0.15%, or 17 cents, to trade at $112.63 a barrel. Brent prices rallied to $114.07 on Friday, the highest since September 9.
The IMF cut its forecast for U.S. economic growth this year, saying that the unusually harsh winter, along with the “still-struggling housing market” would act as a drag on growth.
The agency said it now expects the U.S. economy to expand 2% this year, down from its forecast of 2.8% in April.
Data released earlier showed that manufacturing activity in the New York region expanded more quickly than forecast in June, while a separate report showed that industrial production rose more than expected in May.
The Federal Reserve Bank of New York said that its general business conditions index increased to 19.28 this month from a reading of 19.01 in May. Analysts had expected the index to decline to 15.0.
U.S. industrial production rose by a seasonally adjusted 0.6% last month, above forecasts for a 0.5% gain.
Meanwhile, market players continued to monitor developments in Iraq, where the conflict between radical Sunni insurgents and Shiite Iraqi soldiers continued over the weekend, underlining concerns over a disruption to supplies from the country.
Iraq produced approximately 3.5 million barrels a day of oil last month, making it OPEC’s second-biggest oil producer behind Saudi Arabia.
Investors were also cautious ahead of the outcome of the upcoming Federal Reserve policy meeting on Wednesday, as they await fresh indications on the timing of possible interest rates increases.