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Brent crude futures rose $1.25, or 1.47%, to $86.14 a barrel by
1145 GMT. U.S. West Texas Intermediate crude was up $1.29, or
1.6%, at $81.80.
Oil was rebounding after both benchmarks lost about 6% in the
week to Nov. 3.
Saudi Arabia confirmed on Sunday it would continue with its
additional voluntary cut of 1 million barrels per day (bpd) in
December to keep output around 9 million bpd, a ministry of
energy source said.
Russia also announced it would continue its additional voluntary
cut of 300,000 bpd from its crude oil and petroleum product
exports until the end of December.
The cuts could be extended into the first quarter of 2024
because of "seasonally weaker oil demand at the start of every
year, ongoing economic growth concerns and the aim of producers
and OPEC+ to support the oil market’s stability and balance",
said UBS strategist Giovanni Staunovo.
Investors will be watching for further economic data from China
on Tuesday after weak October factory data last week.
Analysts expect a 3.3% year-on-year fall in exports in October,
a Reuters poll showed, slowing from a 6.2% decline in September.
Monday's oil price gains could have been capped by an easing of
crude throughput at Chinese refineries.
Refinery runs are easing from record levels in the third quarter
because of eroding profit margins and a scarcity of export
quotas to the end of the year, traders and industry consultants
told Reuters.
"The reaction to the Saudi and Russian decisions over the
weekend to extend their respective output and exports cuts
throughout December has been, to some extent, countered by the
anticipated fall in China’s refinery throughput this month,"
said PVM analyst Tamas Varga.
Macroeconomic concerns persist in Europe, where Purchasing
Managers' Index (PMI) data showed the slowdown in euro zone
manufacturing accelerated in October.
(Reporting by Robert Harvey, Florence Tan and Colleen
HoweEditing by Louise Heavens and David Goodman)
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