U.S. crude oil futures jumped nearly 2% on Monday, reclaiming some of the losses from last week’s steep sell-off.
The U.S. benchmark finished last week more than 8% lower as traders increasingly believe Israel-Iran tensions will not lead to an oil supply disruption in the Middle East.
Prices rose Monday after China cut its benchmark lending rate. Saudi Aramco CEO Amin Nasser said he remains “fairly bullish” on demand in the world’s second-largest economy.
Here are Monday’s closing energy prices:
- West Texas Intermediate November contract: $70.56 per barrel, up $1.34, or 1.94%. Year to date, U.S. crude oil has more than 1%.
- Brent December contract: $74.29 per barrel, up $1.23, or 1.68%. Year to date, the global benchmark has declined more than 3%.
- RBOB Gasoline October contract: $2.0147 per gallon, up 0.63%. Year to date, gasoline has pulled back about 4%.
- Natural Gas October contract: $2.312 per thousand cubic feet, up 2.39%. Year to date, gas has tumbled about 8%.
The oil market has shifted focus back to supply and demand fundamentals, with consumption in China softening as supplies are expected to rise.
Morgan Stanley is forecasting a surplus of 1.3 million barrels per day in 2025 as demand in China softens, OPEC plans to bring barrels back to the market in December and the U.S. continues to produce crude at a strong clip.
