Oil fell on Monday, reversing an earlier gain, pressured by the prospect of a faster-than-expected full restoration of Saudi oil output and by fresh signs of European economic weakness, Reuters/CNBC informs.
A source, briefed on the latest developments in the Sept. 14 attack on Saudi oil facilities, told Reuters Saudi Arabia had restored around 75% of crude production lost.
Oil was up earlier in the session, supported by skepticism over how fast output would come back. Global benchmark Brent crude fell 17 cents to $64.11 a barrel, having risen as high as $65.50. U.S. West Texas Intermediate was down 3 cents at $58.06.
A survey showing euro zone business growth stalled this month, dragged down by shrinking activity in Germany where a manufacturing recession deepened unexpectedly, also weighed on oil and other markets such as equities.
“Oil prices are tracking European markets lower … understandably knocked by the woeful manufacturing data from the bloc and the implications for global growth and demand,” said Craig Erlam, analyst at OANDA.
Brent has still gained about 18% this year, helped by a supply-limiting pact led by the Organization of the Petroleum Exporting Countries, although concern about slowing economic growth has limited the advance, Reuters writes.
Tension in the Middle East has escalated since the Saudi attack. The Pentagon has ordered additional U.S. troops to be deployed in the Gulf region to strengthen Saudi Arabia’s air and missile defenses.
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