NEW YORK (Dow Jones)--Crude futures ended lower Monday as the dollar rose against the euro and equities fell.
Light, sweet crude for September delivery settled down 33 cents, or 0.5%, at $70.60 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange settled nine cents, or 0.1% lower, at $73.50 a barrel.
The dollar advanced Monday to a one-week high against the euro. A stronger dollar makes crude more expensive for holders of other currencies. The euro was recently at $1.4116, down from $1.4219.
Crude futures have risen almost 20% since July 13 on expectations an economic recovery will galvanize oil demand. Upbeat data showing U.S. unemployment fell to a surprising 9.4% in July sent prices rising close to $73 a barrel Friday, but a rebounding dollar capped gains.
"The ongoing strength in the dollar quelled the upward momentum in the oil market," said Stephen Schork, editor of the energy newsletter The Schork Report.
Crude has been caught in a tug-of-war between bulging oil inventories and hopes of an economic rebound. Sliding equities, a barometer for the health of the economy, exerted further pressure on crude prices. The Dow Jones Industrial Average was recently down 46.53 at 9323.44.
"We'll stay in this range until will get a weather event or we get a change in supply from OPEC," said Morgan Downey, a commodities trader with Standard Chartered PLC in New York.
The National Hurricane Center is tracking a pair of storm systems, including one southwest of the southern Cape Verde Islands that could become a tropical depression in the next day or two. Another storm, with a low potential for tropical cyclone formation, was near the Windward Islands. Neither is considered to pose a serious threat to energy infrastructure, but serve as a reminder that the normal peak of hurricane season has arrived.
Meanwhile, quota compliance by Organization of Petroleum Exporting Countries is deteriorating, according to the latest Dow Jones OPEC-11 survey, falling to 73% compared with the 76% achieved in June, as producers seek to take advantage of higher oil prices.
Front-month September reformulated gasoline blendstock, or RBOB, settled up 1.93 cents, or 1%, at $2.0274 a gallon. September heating oil settled up 1.54 cents, or 0.8%, at $1.9276 a gallon.
More information on settlements and highs and lows for futures on Nymex and ICE platforms can be found by searching for the following headlines:
Nymex Light Crude Oil Close
Nymex Harbor RBOB Gasoline Close
Nymex Heating Oil Close
ICE Brent Crude Oil Close
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