2019.12.0209:23:00UTC+00Oil Prices Rally On China Data, Talk Of Supply Curbs

Oil prices jumped more than 2 percent on Monday as Chinese manufacturing PMI data beat forecasts and reports suggested that OPEC and its allies may agree to deepen output cuts at a meeting this week.

Benchmark Brent crude jumped 2.3 percent to $61.89 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were up as much as 2.5 percent at $56.55.

Upbeat factory activity reports from China helped offset investor anxiety over the prospects of a proposed Sino-U.S. trade deal.

China's manufacturing activity expanded at a moderate pace in November, but this was the strongest growth since December 2016, survey data from the IHS Markit showed.

The Caixin manufacturing Purchasing Managers' Index rose slightly to 51.8 from 51.7 in October, signaling an improvement for the fourth consecutive month.

According to official survey, released over the weekend, the manufacturing sector returned to growth in November. The PMI advanced to 50.2 from 49.3 while the non-manufacturing PMI advanced to 54.4 from 52.8.

The latest upturn was partly underpinned by a further rise in new business placed with Chinese manufacturers. Despite easing from October, the rate of new order growth remained solid overall.

Iraq's oil minister Thamer Ghadhban said that OPEC+ will consider deepening the cuts at meetings due this week in Vienna.

OPEC's ministers will meet on Thursday while the wider OPEC+ group gathers on Friday.