2020.08.1019:49:00UTC+00Crude Oil Futures Settle Sharply Higher

Crude oil prices climbed higher on Monday, as optimism about energy demand rose a bit after somewhat encouraging factory data from China, and hopes about coronavirus-related stimulus in the U.S.

Comments from Saudi Aramco Chief Executive Amin Nasser that suggested a "partial recovery" in demand.

West Texas Intermediate Crude oil futures for September ended up $0.72 or about 1.7% at $41.94 a barrel.

Brent crude futures moved up $0.82 or nearly 2% to $45.22 a barrel.

Official data from China showed the consumer price inflation in the country accelerated in July on higher food costs as regional flooding disrupted transportation, and the decline in factory gate prices slowed further reflecting the recovery in economic activity.

According to the report from the National Bureau of Statistics, inflation rose to 2.7% in July from 2.5% in June, marginally above economists' forecast of 2.6%.

On a monthly basis, consumer prices climbed 0.6%, offsetting a 0.1% drop in June. Economists had forecast a monthly increase of 0.4%.

Iraq, a key member of the Organization of the Petroleum Exporting Countries and its allies (OPEC+), said on Friday that it will cut production by 400,000 barrels per day in August and September to compensate for failing to comply with a deal made in April to limit oil production.

Saudi Arabian Aramco Chief Executive Nasser said on Sunday the company has seen signs of a recovery in global oil demand as economies gradually open up. Crude consumption in Asia is almost back to pre-Covid-19 levels, Nasser added.