Investing.com - Bottom fishers snapped up nicely priced oil positions on Monday and erased losses stemming from fears the U.S. government risks defaulting on its debts and slowing growth at home and possibly abroad as a consequence.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD102.49 a barrel during U.S. trading, up 0.46%.
The commodity hit a session low of USD101.08 and a high of USD102.58. The November contract settled down 0.96% at USD102.02 a barrel on Friday.
Oil futures were likely to find support at USD100.63 a barrel, Friday's low, and resistance at USD104.06 a barrel, Tuesday's high.
Negotiations between the White House and congressional Republicans and Democrats remained in a deadlock on Monday, with both sides unable to agree on a short-term debt ceiling increase.
A government shutdown, also the product of congressional ability to agree on a spending package, was set to enter its third week this week.
World finance ministers and central bank chiefs gathered in Washington for the annual meeting of the International Monetary Fund and World Bank, calling for urgent action to end the stalemate and avoid default, which could bruise global economic recovery and crimp demand for energy.
IMF Managing Director Christine Lagarde said on Sunday that failure to raise the debt ceiling and fund the government has global policymakers worried.
“If there is that degree of disruption, that lack of certainty, that lack of trust in the U.S. signature, it would mean massive disruption the world over, and we would be at risk of tipping, yet again, into recession,” Lagarde said in an interview with NBC’S “Meet the Press” program.
Oil prices rose, however, on sentiments the commodity was oversold, especially due to bullish data out of Europe that showed that industrial production in the euro zone rose 1.0% in August, beating market calls for a 0.8% increase.
Oil also found support after China reported that it imported a record-high 25.68 million metric tons of crude in September, or 6.28 million barrels a day, up 19.8% from August.
The previous record was 6.18 million barrels a day in July.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Meanwhile on the ICE Futures Exchange, Brent oil futures for November delivery were down 0.29% at USD110.10 a barrel, up USD7.61 from its U.S. counterpart.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD102.49 a barrel during U.S. trading, up 0.46%.
The commodity hit a session low of USD101.08 and a high of USD102.58. The November contract settled down 0.96% at USD102.02 a barrel on Friday.
Oil futures were likely to find support at USD100.63 a barrel, Friday's low, and resistance at USD104.06 a barrel, Tuesday's high.
Negotiations between the White House and congressional Republicans and Democrats remained in a deadlock on Monday, with both sides unable to agree on a short-term debt ceiling increase.
A government shutdown, also the product of congressional ability to agree on a spending package, was set to enter its third week this week.
World finance ministers and central bank chiefs gathered in Washington for the annual meeting of the International Monetary Fund and World Bank, calling for urgent action to end the stalemate and avoid default, which could bruise global economic recovery and crimp demand for energy.
IMF Managing Director Christine Lagarde said on Sunday that failure to raise the debt ceiling and fund the government has global policymakers worried.
“If there is that degree of disruption, that lack of certainty, that lack of trust in the U.S. signature, it would mean massive disruption the world over, and we would be at risk of tipping, yet again, into recession,” Lagarde said in an interview with NBC’S “Meet the Press” program.
Oil prices rose, however, on sentiments the commodity was oversold, especially due to bullish data out of Europe that showed that industrial production in the euro zone rose 1.0% in August, beating market calls for a 0.8% increase.
Oil also found support after China reported that it imported a record-high 25.68 million metric tons of crude in September, or 6.28 million barrels a day, up 19.8% from August.
The previous record was 6.18 million barrels a day in July.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Meanwhile on the ICE Futures Exchange, Brent oil futures for November delivery were down 0.29% at USD110.10 a barrel, up USD7.61 from its U.S. counterpart.