2020.06.1519:32:00UTC+00Crude Oil Futures Rebound After Early Weakness, Settle Notably Higher

After early weakness, crude oil prices moved higher on Monday as hopes about production cuts outweighed concerns about outlook for energy demand amid reports of spikes in coronavirus cases.

West Texas Intermediate crude oil futures settled at $37.12 a barrel, gaining $0.86 or about 2.4% for the session.

Brent crude futures were moving up by about $0.95 or 2.5% at $39.74 a barrel.

Oil prices recovered on reports the OPEC members and allies were complying well with their output reduction deal.

The UAE energy minister has reportedly said that he is confident that those oil producers with poor compliance would meet their commitments.

A panel from out of OPEC+, which has been assigned the task of monitoring members to see if they are complying with agreed cuts, is set to meet this week to take stock of the position.

Among the positives for oil today was that China's oil throughput increased by over 8% in May compared with a year earlier.

Still, disappointing industrial production and retail sales data from China and reports about a surge in new cases of coronavirus infections in the U.S., China and Japan limited oil's uptick.

Several states in the U.S. reported a surge in new coronavirus infections following the reopening of businesses. Over 25,000 new U.S. cases were reported on Saturday alone as more states reported record new infections and hospitalizations.

Beijing recorded a spate of new covid-19 cases in a major wholesale food market, raising worries about a second wave of coronavirus infections.

Tokyo reported 47 new coronavirus cases on Sunday, the highest since May 5, as the capital eases restrictions and readies to fully reopen the economy.