U.S. crude oil ended at a one-week low on Monday, mostly on demand growth concerns after a sharp decline in refined crude output for April in China and some soft economic data out of the world second largest economy. Investors also weighed speculations the U.S. Federal Reserve will cut back on its quantitative easing program following some upbeat macroeconomic data out of the country, including lower employment levels reported last week.
Crude processing in China dived to its lowest level in eight months with April output dropping to 9.36 barrels a day, reports the Chinese National Bureau of Statistics. The decrease has been largely attributed to maintenance.
Meanwhile, China's industrial production rose less than expected in April, while retail sales growth was in line with expectations. Nonetheless, the macroeconomic data did little to suggest any strength in the recovery underway in the world's second largest economy.
Light Sweet Crude Oil futures for June delivery, the most actively traded contract, shed $0.87 or 0.9 percent to close at $95.17 a barrel on the New York Mercantile Exchange Monday.
Crude prices for June delivery scaled a high of $95.81 a barrel intraday and a low of $94.47.
Last week, oil settled marginally higher on supply concerns with focus on developments in Syria after Israeli airstrikes heightened tensions in the Middle-East.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 83.27 on Monday, up from 83.10 late Friday in North American trade. The dollar scaled a high of 83.36 intraday and a low of 83.07.
The euro traded lower against the dollar at $1.2971 on Monday, as compared to $1.2974 late Friday in North America. The euro scaled a high of $1.2998 intraday and a low of $1.2944.
In economic news, retail sales in the U.S. unexpectedly showed a modest increase in April, a Commerce Department report showed Monday. Retail sales inched up by 0.1 percent in April following a revised 0.5 percent decrease in March. Economists expected sales to dip by 0.3 percent compared to the 0.4 percent drop originally reported for the previous month.
With a drop in retail inventories offsetting an increase in wholesale inventories, the Commerce Department released a report on Monday showing that U.S. business inventories unexpectedly came in unchanged in the month of March.
Separately, the Commerce Department said U.S. business inventories unexpectedly came in unchanged in March, with a drop in retail inventories offsetting an increase in wholesale inventories. Business inventories were virtually unchanged for the second consecutive month, while economists had expected inventories to increase by 0.3 percent. Retail inventories fell 0.5 percent in March after rising by 0.2 percent in February, while wholesale inventories rose 0.4 percent after falling by 0.3 percent in the previous month
China's industrial production increased 9.3 percent year-on-year in April, faster than the 8.9 percent rise in the previous month. However, the output growth was below forecast of 9.4 percent growth. In the first four months of the year, production was up 9.4 percent compared to the same period last year.
Retail sales in China increased 12.8 percent annually in April, as expected. This compares with the 12.6 percent rise recorded in March. In the January-April period, sales were up 12.5 percent compared to the same period of 2012.
China's GDP growth eased to 7.7 percent in the first quarter from the 7.9 percent expansion in the fourth quarter, which ended seven quarters of economic slowdown.
From the eurozone, Germany's exports grew 0.5 percent month-on-month in March, partially offsetting the 1.2 percent drop in February, the Federal Statistical Office said. The monthly rate of expansion were in line with economists' expectations. Imports grew 0.8 percent on a monthly basis, after declining 3.9 percent in the prior month. Nonetheless, the rate was below the consensus forecast of 1.5 percent.
Separately, the agency said German factory sales continued to decline in March, but at a slower pace compared to the previous month. Manufacturing turnover fell 1.8 percent year-on-year on a working day adjusted basis in March, following 3.2 percent decrease in February and a 2.6 percent fall in January.
Meanwhile, the U.K. visible trade deficit decreased slightly in March largely due to an increase in exports, the Office for National Statistics said. The deficit on trade in goods totaled GBP 9.1 billion in March, down from GBP 9.2 billion in February, but slightly above the consensus forecast of GBP 9 billion.
In focus this week, will be crude oil inventories data from the American Petroleum Institute on Tuesday and the Energy Information Administration report due Wednesday.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.