WASHINGTON (dpa-AFX) - U.S. crude oil ended higher for a second straight session on Friday, as the dollar weakened against a basket of major currencies with investor focus on developments in Ukraine and the possible disruption in oil supplies from Russia.
Crude oil also firmed after news of an oil spill at one of the busiest ports in the U.S. which could slow down oil deliveries. The mishap occurred after two vessels colluded in the vicinity of the Houston Ship Channel in Texas on Saturday. The port handles almost 10 percent of U.S. refining networks and it is estimated that the clean-up operations could take almost a week.
In news from the strategically important Black Sea region, Russian troops have seized most of Ukraine's bases in the Crimea, days after voting to annex the peninsula. With the West toughening their stance over its annexation of Ukraine's Crimea region, Russia faces more stringent sanctions which could see disruption in global oil supplies. Russia is one of the major oil producer and supplier in the world.
Some weak data from China where the country's manufacturing activity contracted to an eight-month low in February, also weighed on sentiment. However, the report triggered hopes the Chinese central bank may well come out with new stimulus plans to boost the sagging economy.
Light Sweet Crude Oil futures for May delivery, the most actively traded contract, gained $0.14 or 0.1 percent to close at $99.60 a barrel on the New York Mercantile Exchange Monday.
Crude prices for May delivery scaled a high of $100.29 a barrel intraday and a low of $99.05.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.93 on Friday, down from its previous close of 80.12 late Friday in North American trade. The dollar scaled a high of 80.29 intraday and a low of 79.98.
The euro traded higher against the dollar at $1.3839 on Monday, as compared to its previous close of $1.3798 late Friday in North America. The euro scaled a high of $1.3875 intraday and a low of $1.3762.
In economic news from the U.S., a report from Markit Economics on Monday showed manufacturing business conditions continued to improve in March, although the index of activity in the manufacturing sector fell more than expected. A flash estimate of its manufacturing purchasing managers' index for March came in at 55.5, down from 57.1 in February. Economists anticipated a reading of 56.5.
In economic news from Asia, manufacturing activity in China contracted to an eight-month low in February, with the HSBC Markit's Purchasing Managers Index coming in at 48.1, down from 48.5 in February, and well shy of the 48.7 forecast. This is further below the mark of 50 that separates expansion from contraction. However, the report triggered hopes that the Chinese central bank may come out with new stimulus plans to boost the sagging economy.
From Europe, the euro area private economy maintained its growth momentum in March, with activity expanding for the ninth consecutive month, preliminary data from Markit Economics showed Monday. The flash composite output index came in at 53.2 in March, but was lower than February's 32-month high of 53.3 and the expected level of 53.1.
The flash Eurozone services PMI dropped to 52.4 from 52.6 in February, when it was expected to drop to 52.5. The manufacturing index slid to 53.0 from 53.2 in February, but in line with expectations.
New orders in the German construction sector increased notably in January, with the total value of new orders placed with construction firms climbing 10.6 percent on an annual basis. Orders of residential building climbed 15 percent year-on-year, and civil engineering orders moved up 5.2 percent. Turnover in the German construction sector advanced 21.7 percent in January from last year. Employment in the sector grew 0.9 percent during the month.
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