Crude oil futures ended lower on Monday amid concerns about the outlook for energy demand following a drop in global factory activity in the month of June. 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 street, who had expected the index to inch up to 47.2. However, oil prices rose in early trade as Saudi Arabia announced it would extend a 1 million barrel-a-day production cut through August and Russia said it would cut exports this month by 500,000 barrels a day.
Benchmark crude oil futures for August delivery dropped $0.85 or about 1.2 percent to settle at $69.79 a barrel on the New York Mercantile Exchange. Brent crude for September delivery fell $0.76 or 1 percent to settle at $74.65 a barrel on London's Intercontinental Exchange.