Crude oil jumped more than 2%, to new 2019 highs Monday, with Brent crude touching $69 a barrel, after positive signs for the global economy and tighter supplies powered West Texas Intermediate and Brent prices.
U.S. WTI futures settled up $1.45, or 2.4%, to $61.59/Bbl, after reaching their highest price in nearly five months, at $61.72/Bbl, Kallanish Energy reports. WTI gained 32% in the first three months of 2019.
Brent crude for June delivery was up $1.48, or 2.2%, at $69.06/Bbl after rising to its highest price since November. The global benchmark jumped 27% in the January-March period.
U.S. stocks rallied after upbeat manufacturing numbers from the U.S. and China eased worries about slowing global growth. China’s manufacturing sector unexpectedly returned to growth for the first time in four months in March, Reuters reported. U.S. manufacturing numbers also came in better-than-expected in March.
The U.S. and China said they made progress in trade talks that concluded last Friday in Beijing, with Washington saying the negotiations were “candid and constructive” as the world’s two largest economies try to resolve their trade differences.
China’s State Council said Sunday the country would continue to suspend additional tariffs on U.S. vehicles and auto parts after April 1, in a goodwill gesture following a U.S. decision to delay tariff hikes on Chinese imports.
Production cuts from Opec helped push the group’s supply to a four-year low in March, a Reuters survey found, as top exporter Saudi Arabia over-delivered on the group’s supply-cutting pact, while Venezuelan output fell further due to U.S. sanctions and power outages.
Booming American production has steadied, with the U.S. government reporting last Friday domestic output from the world’s top crude producer slipped lower in January, to 11.9 million barrels per day (Mmbpd), from 12.1 Mmbpd.
Output from Opec fell by 280,000 Bpd from February, to 30.4 Mmbpd, according to a Reuters survey, its lowest monthly rate since 2015.
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