Oil Futures Rebound After Early Weakness, Settle Sharply Higher
Crude oil prices rebounded after early weakness on Monday and the near month futures contract closed notably higher, lifted by data showing another expansion in U.S. manufacturing sector activity.
Strong manufacturing data from China and the Euro area helped ease worries about about outlook for energy demand.
Markets were also looking ahead to the outcome of the U.S. presidential election.
West Texas Intermediate Crude oil futures for December ended up $1.02 or about 2.8% at $36.81 a barrel,
Brent crude futures were up $1.14 or about 3% at $39.08 a barrel.
In updates on the Covid-19 front, several states across the U.S. are reportedly seeing a surge in new coronavirus cases.
With the U.K. set to go on a month-long lockdown from Thursday, and Belgium, France and Germany also experiencing their own second lockdowns, the outlook for energy demand continues to remain weak.
Meanwhile on crude output front, supplies from Libya and Iraq are on the rise.
OPEC+ is scheduled to meet on Nov. 30 and Dec. 1 to discuss production plans. It is expected that the meeting will decide on delaying plans to ramp up output.
In economic news, a report released by the Institute For Supply Management said the ISM purchasing managers index climbed to 59.3 in October from 55.4 in September, with a reading above 50 indicating growth in manufacturing activity. Economists had expected the index to inch up to 55.8.
The euro area manufacturing sector gained further strength in October driven by acceleration in production and new orders, final survey results from IHS Markit showed. The manufacturing Purchasing Managers’ Index rose to 54.8 in October from 53.7 in September.
The manufacturing sector in China continued to expand in October, and at a faster rate, the latest survey from Caixin revealed with a manufacturing PMI score of 53.6, up from 53.0 in September.
Source: Read Full Article