2020.11.1609:18:00UTC+00Oil Prices Rally On Hopes OPEC+ Will Curb Supply

Oil prices rose sharply on Monday as strong economic data from China and Japan and hopes that OPEC+ will continue to curb output offset concerns of weaker fuel demand.

Benchmark Brent crude jumped 1.8 percent to $43.56 per barrel, while West Texas Intermediate crude futures were up 2.1 percent at $40.99.

Both contracts gained more than 8 percent last week as positive news about coronavirus vaccine development offered a glimmer of hope.

China's factory output rose faster than expected in October and retail sales growth accelerated from the previous month, suggesting a broader economic recovery from the coronavirus pandemic.

Elsewhere, Japan's economy grew at the fastest pace on record in the third quarter, rebounding sharply from its biggest postwar slump.

The Organization of Petroleum Exporting Countries and their allies (OPEC+) are due to meet on Tuesday and it is likely that the cartel will suggest changes to production quotas when all the ministers meet on November 30 and December 1.

For now, OPEC+ is cutting production by about 7.7 million barrels per day, with a compliance rate seen at 101 percent in October.