Crude Oil Updates: Futures under pressure from stronger dollar, OPEC in focus

Crude oil futures gave back some of the previous session's strong gains on Monday, coming under pressure from a broadly stronger U.S. dollar. On the New York Mercantile Exchange, crude oil for July delivery slumped 71 cents, or 1.18%, to trade at $59.59 a barrel during European morning hours. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.55% at 97.47 early Monday, not far from the five-week highs of 97.88 hit last week. Dollar-denominated oil futures contracts tend to fall when the dollar rises, as this makes oil more expensive for buyers in other currencies. The greenback has been well-supported in recent sessions amid speculation the Federal Reserve was on track to raise interest rates in September. Recent economic data has indicated that the U.S. economy is gaining momentum after a slowdown in the first quarter, supporting the case for higher interest rates later this year. Investors looked ahead to the release of key data later in the session for further indications over the timing of a rate increase and the strength of the economy. The Institute of Supply Management was to release data on manufacturing activity for May later Monday. Market players are also looking ahead to the non farm payrolls report due later this week. On Friday, New York-traded oil futures jumped $2.62, or 4.54%, to end at $60.30 after data showed that the number of rigs drilling for oil in the U.S. fell by the most in four weeks last week, soothing worries that the sharp decline in drilling activity may be nearing an end.

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