Oil futures surged on Monday, hitting their highest levels since October, driven by unexpected data from the industrial sectors of both China and the United States, while investors awaited the upcoming OPEC+ meeting.
On the New York Mercantile Exchange (Nymex), WTI for May climbed 0.65%, or $0.54, to reach $83.71 per barrel, while Brent for June rose 0.48%, or $0.42, closing at $87.42 per barrel.
China’s industrial Purchasing Managers’ Index (PMI) soared from 49.1 in February to 50.8 in March, surpassing experts’ expectations of 50, signaling a promising improvement in economic dynamics and industrial recovery, according to analysis by Capital Economics.
Meanwhile, tensions in the Middle East, exacerbated by an Israeli attack on an Iranian embassy facility in Damascus, are adding pressure to the commodity markets.
Although the casualty hasn’t been officially confirmed, Mizuho experts suggest the incident could escalate Iranian intervention in the conflict.
Looking ahead, Peter Cardillo of Spartan Capital anticipates a subdued OPEC+ meeting tomorrow, with minimal impact on commodity prices, as the group is likely to maintain existing quota reductions, a move already anticipated by the market.
