Oil rebounds from 14-month nadir as dollar sides

Oil futures surged nearly three percent in American trade on Monday, with US crude and Brent climbing off October 2017 lows, while the dollar index slid from November 13 highs.. 

Washington and Beijing reached a trade truce to hammer out their disagreements, while Saudi Crown Prince Muhammad Bin Salman agreed to extend the deal to cut global output into 2019 ahead of an OPEC official meeting in Vienna next Thursday. 

As of 06:56 GMT, US crude futures due in January rallied 3.32% to $52.62 a barrel, while Brent January futures spiked 2.81% to $61.13 a barrel, as the dollar index fell 0.32% to 96.96. 

Earlier US data showed the final Markit Manufacturing PMI down to 55.3 in November from the flash trading of 55.4, and down from 55.4 in October. 

The US ISM manufacturing PMI rose to 59.3 in November from 57.7, beating estimates of 57.5. 

ISM manufacturing prices tumbled to 60.7 from 71.6, missing estimates of 70.1. 

Construction spending fell 0.1%, same as September and missing estimates of a 0.4% increase. 

On Sunday, the White House released a statement of the dinner attended by world leaders at the G20 Summit, with both President Donald Trump and Xiu Jinping discussing the trade dispute between the two countries. 

The statement noted that Trump agreed to hold off raising tariffs on $200 billion worth of Chinese product by January 2019, as US and Chinese officials will continue to negotiate the hanging trade issues in the next 90 days. 

Trump and Jinping reached an agreement to hold off the reciprocal tariffs for three months until negotiations progress far enough. 

Otherwise, Russian President Vladimir Putin announced an agreement with Saudi Crown Prince Muhammad Bin Salman to continue cutting output into 2019 after oil prices marked the worst performance in nearly a decade last month. 

Otherwise, Russian energy minister Alexander Novak said in earlier remarks that producers inside and outside OPEC prefer current oil prices and are confident of reaching another output deal for 2019.

Novak added that US sanctions on Iran have already been priced in by the markets, adding that producers should deal with any unexpected developments in the markets top maintain balance. 

Otherwise, reports are circulating of Saudi Arabia's record highs of production in November, with a source telling Reuters the amount has reached between 11.1 million and 11.3 million bpd. 

US output rose to a record 11.7 million bpd last month month, making America the world's top producer. 

Iran Sanctions 

Otherwise, as US sanctions went into effect on Iranian oil exports starting November 4, eight countries were granted waivers for 180 days, mainly China, India, South Korea, Japan, Italy, Greece, Taiwan, and Turkey, already the largest importers of Iranian oil.