Oil prices rose on Monday thanks to improving manufacturing data from China and reports that Opec monthly output fell in October for the first time since April.
Data from a Reuters survey showed that, because of lower output from Saudi Arabia, Iraq and Nigeria, supply from the 11-member Organisation of Petroleum Exporting Countries fell to 26.38m barrels per day from 26.4m b/d in September.
Meanwhile, purchasing managers’ data indicated that the recovery in China’s manufacturing industry was gathering pace after the PMI index rose to 55.2 in October – its highest level in 18 months, underlining the outlook for robust demand for crude.
Similar data from the UK and the eurozone showing expansion in manufacturing also helped to lift commodity prices and by late morning in London, Nymex West Texas Intermediate for December delivery rose $1.07 to $78.07 a barrel, following sharp losses on Friday. Brent crude climbed $1.25 to $76.45 a barrel.