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West Texas Intermediate returned to the red side of the scale amid weak U.S. housing data. Pending Home Sales eased off a 6-year high in June, spurring concern over the U.S. economic recovery. Earlier in the day, oil erased prior losses and traded on the upside as concern over supply from the Middle East pushed prices up.

On the New York Mercantile Exchange, WTI for September delivery traded at $104.52 per barrel at 14:36 GMT, down 0.17% on the day. Prices held in a wide range between days high of $105.36 and low at $103.88 per barrel, the lowest since July 9. The American benchmark slipped 0.8% on Friday and settled 3.33% lower last week, snapping a four-week period of advances.

Meanwhile on the ICE, Brent oil for September delivery stood at $107.28 a barrel at 14:40 GMT, up 0.10% on the day. Futures ranged between days high and low of $107.85 and $106.60 a barrel respectively. Brent dipped 0.45% on Friday and settled the week 1.26% lower after plunging 0.55% the preceding one.

West Texas Intermediate declined back after erasing prior losses earlier in the day as weak housing data spurred speculation over the U.S. economys recovery pace. Industry data showed that U.S. Pending Home Sales declined by 0.4% in June, which was less than the expected 1.0% tumble, but was well below Mays 5.8% surge. Mays reading was revised down from 6.7%.

Oil losses remained limited throughout the day as concern over global supply continued to support prices. Currently, output which equals to well over 500 000 barrels per day is halted amid reduced or stopped shipments from Libya, Iraq, the North Seas Forties pipeline and elsewhere. Egypts Muslim Brotherhood which supports ousted President Mohamed Mursi defied the new governments threats to cease protests and urged loyalists to march on security installations.

According to the Health Ministry, at least 72 people were killed near a protest in Cairo, while eight died in Alexandria. This was the the highest number of people killed in a single incident after the Egyptian army ousted Islamist President Mohamed Mursi.

Meanwhile, negative news from China weighed on prices as industrial companies reported that their profits in June gained with a slower pace compared to May. The Asian country is the worlds second biggest consumer and accounted for 11% of global consumption last year.

Meanwhile, the Chinese the National Audit Office said the State Council, under Premier Li Keqiang, ordered emergency audits of government debt. John Kilduff, a partner at Again Capital LLC, said for Bloomberg: “The emergency audits in China are raising concern that the situation there is worse than was anticipated.”

Oil continued to fall on Monday as Prince Alwaleed bin Talal told Oil Minister Ali Al-Naimi in an open letter that Saudi Arabia won’t be able to increase daily output to 15 million barrels as planned as rising North American shale oil production is expected to increase self-sustainability and reduce U.S. crude imports. He also said there is a “clear and increasing decline” for OPEC oil and that the kingdom is now pumping below capacity as consumers reduce imports.

“We disagree with your excellency on what you said and we see that raising North American shale gas production is an inevitable threat,” said Alwaleed in the letter.

The latest EIA oil reserves report on Wednesday showed that despite gasoline and distillate fuel stockpiles confounded analysts’ expectations for an increase, U.S. oil output rose to 7.56 million barrels per day last week, the highest since December 1990.

Market players will be keeping a close eye on key U.S. economic data and the outcome of FOMCs two day meeting on Tuesday and Wednesday in order to gauge the economic recovery pace of the top oil consumer and the future of Feds Quantitative Easing program.

Consumer Confidence and S&P/Case-Shiller Composite-20 Home Price Index will be released on Tuesday. On Wednesday, we’ll receive preliminary unemployment data prior to Friday’s Unemployment Rate. The ADP Employment Change is expected to remain flat at 188 000. Also on Wednesday, Personal Consumption Expenditures, Employment Cost Index and Chicago PMI will be released and the FOMC will announce its interest rate decision. On Thursday, Initial Jobless Claims are expected to have risen by 1 000 in the week ending July 27 and the ISM Manufacturing index should show improvement. On Friday, one of Fed’s main requirements to trim its monetary stimulus, the Unemployment Rate, is expected to have fallen to 7.5% in July, down from 7.6%. Also on Friday are due Personal Income, Personal Spending, Average Hourly Earnings and Factory Orders.

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