23.09.201915:11:00UTC+00Oil Rebounds After Early Weakness, Settles Notably Higher

Despite concerns about near-term energy demand amid global economic slowdown, crude oil futures settled notably higher on Monday due to possible drop in crude oil supply following recent attacks on Saudi oil facilities.

Oil prices rose despite reports Saudi Arabia has restored nearly three-fourth of the production lost due to the drone attacks about ten days ago.

Oil was presumably supported by reports - citing a few Saudi officials and oil contractors - that it may take many months for the kingdom to restore operations to full working order.

West Texas Intermediate Crude oil futures for November ended up $0.55, or about 1%, at $58.64 a barrel.

On Friday, WTI crude oil futures for November ended down $0.10, or about 0.2%, at $58.09 a barrel. For the week, oil futures gained almost 6%, the biggest weekly gain in nearly three months.

Weak euro area economic data and uncertainty about a U.S.-China trade agreement limited oil's uptick.

Survey data from IHS Markit showed the euro area private sector moved close to stalling at the end of the third quarter. The flash composite output index fell unexpectedly to a 75-month low of 50.4 in September from 51.9 in August.

The Purchasing Managers' Index for services slid to 52.0 from 53.5 in August. The expected reading was 53.0, while the manufacturing PMI declined further, to 45.6 from 47.0 in August. The score was forecast to rise to 47.5.

Germany's private sector contracted the most since late 2012, while France private sector expansion eased to the lowest level in four months in September.

On the trade front, a quick solution to the U.S.-China dispute continues to remain elusive. Following the Chinese cutting short a visit to the U.S. last week and President Donald Trump indicating he is not in a hurry to reach an agreement, it now seems the two countries are unlikely to agree on any trade deal in the near future.