Investing.com - Crude oil futures shook off initial weakness to trade higher on Monday, after regional election results in Spain over the weekend indicated support for government austerity policies, fuelling hopes that Madrid is moving closer to requesting a bailout.
Some bargain buying also helped lift oil futures off the lows, after prices moved into oversold territory.
On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD91.12 a barrel during European morning trade, adding 0.75%.
Prices fell by as much as 0.6% earlier in the session to hit a daily low of USD89.89 a barrel, the cheapest since October 9.
Prices fell more than 2% last Friday after The European Union's closely-watched two-day summit ended without major news to renew investor confidence in the region’s handling of its ongoing debt crisis.
Sentiment firmed up slightly on Monday after the center-right Popular Party of Prime Minister Mariano Rajoy increased its majority in his home region of Galicia on Sunday, removing a possible obstacle to formally requesting financial aid from Spain’s euro zone partners.
Rajoy said last Friday he still had not decided whether to request a sovereign bailout, dampening hopes the debt-strapped nation was moving closer to requesting a full-scale bailout.
A bailout would allow the European Central Bank to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation. But Spain has been reluctant to do so because it may come with conditions on its budget.
Some bargain buying also helped lift oil futures off the lows, after prices moved into oversold territory. Technical traders said prices had fallen too far, too fast and were due for a technical bounce.
Oil prices have been under heavy selling pressure in recent sessions, as increasing concerns over the outlook for global economic growth and its impact on future oil demand prospects dampened the appeal of the commodity.
Official data released last week showed that China’s third-quarter gross domestic product grew at an annualized rate of 7.4%, the weakest pace since the first quarter of 2009 and the seventh straight quarter of slower growth.
Markets may stay subdued ahead of the release later in the week of U.S. data including monthly new home sales, durable goods orders and third-quarter GDP figures.
Investors are also turning their attention to the Federal Reserve's policy meeting on Tuesday and Wednesday after the central bank announced its third round of quantitative easing last month.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
In supply news, TransCanada planned to restart its Keystone pipeline Monday, a day later than expected. The pipeline was shut for repairs last Wednesday after a "small anomaly" was found in a section running from Missouri to Illinois.
The Keystone pipeline moves approximately 590,000-barrels-a-day from Canada to Cushing, Oklahoma, the delivery point for New York futures.
Market players also continued to focus on escalating tensions between Syria and Turkey and the possibility that Iran could support Syria in such a dispute.
Countries in the Middle East and North Africa were responsible for 36% of global oil production and held 52% of proved reserves in 2011.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery rose 0.55% to trade at USD110.75 a barrel, with the spread between the Brent and crude contracts standing at USD19.63 a barrel.
London-traded Brent prices continued to draw support from delays in the restart of production in the U.K.’s Buzzard oil field, the largest in the North Sea region.
Output was expected to resume operation over the weekend after the oil field underwent maintenance in September, decreasing the oil supply from the North Sea and providing support to Brent prices.
Some bargain buying also helped lift oil futures off the lows, after prices moved into oversold territory.
On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD91.12 a barrel during European morning trade, adding 0.75%.
Prices fell by as much as 0.6% earlier in the session to hit a daily low of USD89.89 a barrel, the cheapest since October 9.
Prices fell more than 2% last Friday after The European Union's closely-watched two-day summit ended without major news to renew investor confidence in the region’s handling of its ongoing debt crisis.
Sentiment firmed up slightly on Monday after the center-right Popular Party of Prime Minister Mariano Rajoy increased its majority in his home region of Galicia on Sunday, removing a possible obstacle to formally requesting financial aid from Spain’s euro zone partners.
Rajoy said last Friday he still had not decided whether to request a sovereign bailout, dampening hopes the debt-strapped nation was moving closer to requesting a full-scale bailout.
A bailout would allow the European Central Bank to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation. But Spain has been reluctant to do so because it may come with conditions on its budget.
Some bargain buying also helped lift oil futures off the lows, after prices moved into oversold territory. Technical traders said prices had fallen too far, too fast and were due for a technical bounce.
Oil prices have been under heavy selling pressure in recent sessions, as increasing concerns over the outlook for global economic growth and its impact on future oil demand prospects dampened the appeal of the commodity.
Official data released last week showed that China’s third-quarter gross domestic product grew at an annualized rate of 7.4%, the weakest pace since the first quarter of 2009 and the seventh straight quarter of slower growth.
Markets may stay subdued ahead of the release later in the week of U.S. data including monthly new home sales, durable goods orders and third-quarter GDP figures.
Investors are also turning their attention to the Federal Reserve's policy meeting on Tuesday and Wednesday after the central bank announced its third round of quantitative easing last month.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
In supply news, TransCanada planned to restart its Keystone pipeline Monday, a day later than expected. The pipeline was shut for repairs last Wednesday after a "small anomaly" was found in a section running from Missouri to Illinois.
The Keystone pipeline moves approximately 590,000-barrels-a-day from Canada to Cushing, Oklahoma, the delivery point for New York futures.
Market players also continued to focus on escalating tensions between Syria and Turkey and the possibility that Iran could support Syria in such a dispute.
Countries in the Middle East and North Africa were responsible for 36% of global oil production and held 52% of proved reserves in 2011.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery rose 0.55% to trade at USD110.75 a barrel, with the spread between the Brent and crude contracts standing at USD19.63 a barrel.
London-traded Brent prices continued to draw support from delays in the restart of production in the U.K.’s Buzzard oil field, the largest in the North Sea region.
Output was expected to resume operation over the weekend after the oil field underwent maintenance in September, decreasing the oil supply from the North Sea and providing support to Brent prices.