FX.co ★ Oil Futures Settle Lower On Demand Concerns

Crude oil futures settled lower on Monday amid concerns about the outlook for energy demand following a drop in global factory activity in the month of June.

West Texas Intermediate Crude oil futures for August ended lower by $0.85 or about 1.2% at $69.79 a barrel.

Brent crude futures ended down $0.76 or about 1% at $74.65 a barrel.

A report from the Institute for Supply Management showed manufacturing activity in the U.S. unexpectedly contracted at a slightly faster rate in the month of June.

The ISM said its manufacturing PMI edged down to 46.0 in June from 46.9 in May, with a reading below 50 indicating contraction. The dip surprised economists, who had expected the index to inch up to 47.2.

In China, a private survey showed activity in the nation's manufacturing sector slowed in June.

The Caixin/S&P Global manufacturing purchasing managers' index dropped to 50.5 from 50.9 in May, raising calls for more stimulus to boost growth in the world's second-largest economy.

Meanwhile, business surveys from other parts of Asia and Europe also painted a gloomy picture, as traders brace up for tighter supply.