16.05.202219:03:00UTC+00Oil Futures Pare Early Losses, Settle Sharply Higher

Crude oil futures shrugged off early weakness and settled sharply higher on Monday, buoyed by rising gasoline prices.

Oil prices drifted lower earlier in the day after weak data out of China revived fears of a global recession. Also, traders looked to take some profits after the sharp uptick in the previous session.

Reports that Shanghai is looking to reopen broadly and allow normal life to resume from June 1, helped ease concerns about energy demand from the world's second largest economy and contributed to the rebound in oil prices.

A sharp jump in U.S. gasoline futures amid supply concerns due to the drop in stockpiles pushed up crude oil prices.

West Texas Intermediate Crude oil futures for June ended higher by $3.71 or about 3.4% at $114.20 a barrel.

Brent crude futures were up $2.27 or 2.02% at 113.82 a barrel a little while ago.

Data showed earlier in the day that China's retail sales sank 11.1% in April year-on-year and industrial output also fell a steep 2.9%, raising concerns about a deepening slowdown in the world's second-largest economy.

China, the world's largest importer of oil, processed 11% less crude in April than a year earlier, with daily throughput falling to the lowest since March 2020.

Meanwhile, the European Union's diplomats and officials have expressed optimism about reaching a deal on a phased embargo of Russian oil despite concerns about supply in eastern Europe.