Crude oil futures settled higher on Monday, recovering well after sharp early losses, as traders looked ahead to the monetary policy decision of the Federal Reserve, and the meeting of the Organization of the Petroleum Exporting Countries and its allies.
The Federal Reserve is set to announce its policy decision on Wednesday. The central bank is widely expected to hike interest rate by 50 basis points. The bank’s views on the economy and the outlook for future rate hikes are in focus.
Meanwhile the OPEC and its allies are scheduled to meet on Thursday.
West Texas Intermediate Crude oil futures for June ended higher by $0.48 or about 0.5% at $105.17 a barrel, off the day’s low of $100.28 a barrel.
Brent crude futures were up $0.50 or 0.47% at $107.64 a barrel a little while ago.
Oil prices fell earlier in the day as disappointing economic data from China raised concerns about outlook for energy demand.
China released data on Saturday showing that factory activity in the country contracted for a second month to its lowest since February 2020 because of Covid lockdown.
Separately, Caixin released its own manufacturing purchasing managers’ index, revealing a second straight month of deterioration.
As growth worries mount, investors ignored reports suggesting that the EU will propose a phased out ban on Russian oil imports as part of a fresh round of sanctions against Russia for its invasion of Ukraine.
Easing concerns about supply after Libya’s National Oil Corporation declared “temporary lifting of the force majeure” at the Zueitina oil terminal contributed as well to oil’s slide this morning.