Brent crude futures for November delivery gained $1.12, up 1.56% to $73.10 a barrel
Oil prices rose for a second straight session on Monday, with concerns escalating over potential supply disruptions in the Middle East.
Brent crude futures for November delivery gained $1.12, up 1.56% to $73.10 a barrel as of 0611 GMT. That contract expires on Monday, and the more-active contract for December delivery jumped $1.04, or 1.45%, to $72.58.
U.S. West Texas Intermediate crude futures gained 93 cents, or 1.36%, to $69.11 a barrel.
Prices also advanced last Friday, though for the week, Brent declined nearly 3% and WTI skidded by nearly 5% on worries about demand in China, despite fiscal stimulus measures in the world’s second-largest economy and top oil importer.
While excessive supplies are a key concern for oil markets, investors broadly fear a region-wide conflict in the Middle East could affect supplies from key producing areas, according to Priyanka Sachdeva, senior market analyst at Phillip Nova.
Given the upcoming end of OPEC+’s voluntary supply cuts on December 1, WTI may test its 2021 lows in the $61 to $62 a barrel range, according to Tony Sycamore, market analyst at IG.
Additionally, despite China’s recent dovish shift, it is unclear if this will translate into higher fuel demand, considering China’s advancements in electrifying and decarbonising its transportation sector, he added.
Data on Monday was not encouraging for demand, showing China’s manufacturing activity shrank for a fifth consecutive month and the services sector slowed sharply in September.
Later on Monday, markets will be waiting to hear from Fed Chair Jerome Powell for clues on the central bank’s pace of monetary easing. Seven other Fed policymakers are also due to speak this week, ANZ analysts said in a note.
