Crude oil futures - weekly outlook: June 22 - 26

Investing.com - Crude oil futures fell sharply on Friday, as the U.S. dollar firmed up and amid growing concerns over a potential Greek debt default.

On the ICE Futures Exchange in London, Brent for August delivery hit a session low of $62.34, the weakest level since June 5, before closing at $63.02, down $1.24, or 1.93%. For the week, London-traded Brent futures lost $1.35, or 2.51%.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.11% on Friday to end at 94.32, bouncing off the previous session's five-week low of 93.30.

The index still ended the week down 1.02%, the third straight weekly decline, as investors pushed back expectations for higher U.S. interest rates following the conclusion of the Federal Reserve's policy meeting.

Meanwhile, investors continued to monitor developments surrounding talks between Greece and its international creditors, amid growing concerns that the country could default on its debt be forced out of the euro zone.

Greece is running out of time before it owes the International Monetary Fund a bundled loan payment of €1.5 billion on June 30. At the same time, the remaining €7.2 billion of a €240 billion stimulus package from its international creditors is set to expire at the month.

All 28 members of the European Union are scheduled to be present at an emergency summit on Monday, in what could be Greece's final opportunity to avoid a default. Failure to strike a deal would result in Greece defaulting on payments and exiting the euro zone.

Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in August slumped 85 cents, or 1.4%, to end the week at $59.97 a barrel. On the week, New York-traded oil futures declined 36 cents, or 0.71%.

U.S. oil futures remained supported after industry research group Baker Hughes (NYSE:BHI) said late Friday that the number of rigs drilling for oil in the U.S. fell by 4 last week to 31. The drop marks the 28th straight week of declines.

Market players have been paying close attention to the shrinking rig count in recent months for signs it will eventually reduce the glut of crude flowing into the market.

The U.S. Energy Information Administration said on Wednesday that crude oil inventories fell by 2.7 million barrels last week to 467.9 million. It was the seventh straight weekly decline.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $3.05 a barrel by close of trade on Friday, compared to $4.68 in the preceding week.

In the week ahead, euro zone ministers are to hold talks in Brussels on Monday to discuss the crisis in Greece. Investors will also be focusing on what will be closely watched reports on the U.S. factory and housing sectors.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, June 22

Markets in China are to remain closed for the Dragon Boat Festival holiday.

European leaders are to hold emergency talks in Brussels about Greece’s bailout agreement, which is due to expire on June 30.

The U.S. is to release private sector data on existing home sales.

Tuesday, June 23

China is to publish the preliminary reading of the HSBC manufacturing index.

The U.S. is to release reports on durable goods orders, manufacturing activity and new home sales.

Later in the day, the American Petroleum Institute, an industry group, is to publish its weekly report on oil supplies.

Wednesday, June 24

In the euro zone, the Ifo Institute is to report on German business climate.

The U.S. is to release revised data on first quarter economic growth as well as its weekly government report on oil inventories.

Thursday, June 25

The Gfk Group is to report on German business climate.

The U.S. is to release the weekly report on initial jobless claims as well as data on consumer spending.

Friday, June 26

The U.S. is to round up the week with revised data on consumer sentiment.