Crude futures consolidate despite the escalating violence in Iraq

Crude oil futures consolidated slightly on Monday and ended flat despite the escalating violence in Iraq. Traders took cues from reports suggesting the oil producing areas in the country to be largely insulated from the strife. Also, an International Monetary Fund (IMF) decision to trim its 2014 growth forecast for the US watered down oil’s gains. The IMF said it now expects the US economy to expand 2% in 2014, down from its forecast of 2.8% in April.

Benchmark crude oil futures for July delivery, declined marginally by $0.01 to close at $106.90 a barrel after trading in a range of $107.54 and $106.61 a barrel on the New York Mercantile Exchange. In London, Brent oil futures for August delivery gained 0.21 percent to $112.70 a barrel on the ICE.