Oil prices continued to build momentum on Monday as it jumped by nearly 3% backed by the renewed talks that the Organization of Petroleum Exporting Countries (OPEC) would freeze production to ease oversupply woes which steered the market to its three-month lows the previous week.
U.S. West Texas Intermediate crude was at $43.02 per barrel, up $1.22, or 2.9%, recovering from its previous low of $40 a barrel last week, its lowest price since April. Its European counterpart, the Brent crude, closed at $45.39, up $1.12, or 2.5%.
Meanwhile, the price surge on oil due to OPEC’s speculation output did not favor US stocks as investors worried about growing signs that Standard and Poor’s 500 total earnings could fall for the sixth straight quarter.
The S&P 500 started strong in the market by opening at a record high but later turned negative and closed at 2180.89, down 0.09%. Dow Jones industrial average lost 14.24 points, or 0.08% to settle at 1829.29 while NASDAQ dropped 7.98 points, or 0.15%, at 5213.14.
The precious metals gold and silver cannot escape the effect of bigger-than-expected US employment record reported last week.
Gold futures contract for December lose its weight on Monday due to the strong positive economic release from US as it dipped 0.44% and was trading at $1338.45 an ounce while silver contract for September dropped 0.35% to close at $19.75 per ounce.
Globally, gold futures dived 0.3% to settle at 1331.59 per ounce, its lowest price level since July 29.