Oil futures settled modestly higher on Monday, despite paring some early gains amid speculation about a likely drop in demand due to uncertainty about global economic growth.
Oil surged higher $72.20 a barrel, early on in the session after the disappearance of prominent Saudi journalist Jamal Khashoggi raised geopolitical tensions between the U.S. and Saudi Arabia. Oil’s uptick was also supported by the likely impact of U.S.’ sanctions on Iran, on global oil supply.
Crude oil futures for November ended up $0.44, or 0.6%, at $71.78 a barrel. On Friday, crude oil futures ended up $0.37, or 0.5%, at $71.34 a barrel.
According to reports, Jamal Khashoggi who was seen entering the Saudi consulate in Istanbul, Turkey, on October 2, has not been seen since.
President Donald Trump has reportedly said Saudi King Salman had denied knowledge about Khashoggi’s whereabouts in a phone call but that the White House has ordered Secretary of State Mike Pompeo to “immediately get on a plane” to Saudi Arabia.
Meanwhile, traders also appeared to be betting on expectations of a possible drop in global oil demand due to the impact of the U.S.-China trade dispute on global economic growth.