Crude oil futures edge lower as stronger dollar weighs

Investing.com - Crude oil futures declined on Monday, as a broadly stronger U.S. dollar combined with concerns over a global supply glut drove down prices.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.2% to 95.43 early on Monday.

Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.

The dollar got a boost from a weaker euro after last ditch talks between Greece and its international creditors ended without an agreement on a cash-for-reforms deal on Sunday night.

Investors were looking ahead to a meeting of euro zone finance ministers on Thursday, which was being seen as Greece's last chance to strike a deal. Failure to strike a deal would result in Greece defaulting on payments and exiting the euro zone.

On the ICE Futures Exchange in London, Brent oil for August delivery dropped 66 cents, or 1.03%, to trade at $63.98 a barrel during U.S. morning hours.

On Friday, Brent futures lost $1.15, or 1.75%, to close at $64.64 amid concerns that higher output by Saudi Arabia would feed into a global supply glut.

Elsewhere, on the New York Mercantile Exchange, crude oil for August delivery dipped 56 cents, or 0.93%, to trade at $59.84 a barrel. Nymex oil prices dropped 81 cents, or 1.33%, on Friday to end at $59.96.

Industry research group Baker Hughes (NYSE:BHI) said late Friday that the number of rigs drilling for oil in the U.S. fell by 7 last week to 635. The drop marks the 27th 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.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $4.14 a barrel, compared to $4.68 by close of trade on Friday.