U.S. crude oil snapped a three-day gain to end lower Monday, after having trended higher for most of the day amid concerns over supply disruptions following geopolitical tensions in the Middle East, as violence escalated in Syria. The downtrend in oil prices seem to have stemmed from unconfirmed news reports on the Federal Reserve cutting back on its quantitative easing program.
The G-8 meeting beginning Monday could probably see President Barack Obama and Russian President Vladimir Putin discuss the Syrian situation and the U.S. decision to arm Syrian rebels. Meanwhile, investors also weighed the possibility of a statement on strategic oil reserves.
Nevertheless, there were some upbeat economic news with homebuilder confidence in the U.S. jumping more than expected in June, scaling a seven-year high. Meanwhile, conditions for New York manufacturers improved modestly in June with the index of activity in the sector climbing to positive territory, a Federal Reserve Bank of New York report said.
Light Sweet Crude Oil futures for July delivery, the most actively traded contract, shed $0.08 or 0.1 percent to close at $97.77 a barrel on the New York Mercantile Exchange Monday.
Crude prices for July delivery scaled a high of $98.74 a barrel intraday and a low of $97.38.
Last week, oil rose nearly 2 percent on some better than expected weekly initial jobless claims and retail sales data out of the U.S. Nevertheless, investors mulled over the official Energy Information Administration weekly oil report, which indicated a huge jump in U.S. crude oil stockpiles the week earlier.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.86 on Monday, up from 80.62 late Friday in North American trade. The dollar scaled a high of 80.87 intraday and a low of 80.59.
The euro traded lower against the dollar at $1.3337 on Monday, as compared to $1.3348 late Friday in North America. The euro scaled a high of $1.3360 intraday and a low of $1.3320.
In economic news from the U.S., the Federal Reserve Bank of New York said its general business conditions index rose to a positive 7.8 in June from a negative 1.4 in May, with a positive reading indicating an increase in regional manufacturing activity. Economists expected the index at a positive 0.5.
Separately, a report from the National Association of Home Builders showed the NAHB/Wells Fargo Housing Market Index soared to 52 in June from 44 in May. Economists expected the index to show a much more modest increase with a reading of 45. The index is at its highest level since hitting 54 in March of 2006.
Elsewhere, eurozone trade in goods with the rest of the world indicated a surplus in April, which was lower than a month earlier, data from Eurostat revealed. The trade surplus dropped to 14.9 billion euros in April from 22.5 billion euros in March. A year earlier, the surplus amounted to 3.3 billion euros. Exports grew 9 percent year-on-year in April, following a flat result in March. Imports rose 1 percent annually, recovering marginally from a 10 percent slump in the previous month.
During the week, investor focus will be centered on outcome of the 2-day FOMC meet, the Philadelphia Federal Reserve's manufacturing survey for June, the jobless claims report, the Commerce Department's housing starts report for May and the National Association of Realtors' existing home sales report for May
Focus will also be on the crude oil inventories data from the American Petroleum Institute due Tuesday and the Energy Information Administration weekly oil 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.