Crude oil futures ended higher on Monday on possible disruptions in supplies due to escalating tensions in the Middle East, and on hopes the Chinese central bank’s interest rate cuts will help revive demand from the world’s second largest economy. China reduced its benchmark lending rates by 25 basis points as the economic growth slowed further amid persistent deflationary pressures. The People’s Bank of China cut its one-year loan prime rate to 3.1% from 3.35%. Likewise, the five-year LPR, the benchmark for mortgage rates, was lowered to 3.6% from 3.85%. The bank had previously lowered the rates by 10 basis points in July.
Benchmark crude oil futures for November delivery rose $1.34 or about 1.94 percent to settle at $70.56 a barrel on the New York Mercantile Exchange. Brent crude for December delivery gained $1.23 or about 1.68 percent to settle at $74.29 a barrel on London's Intercontinental Exchange.
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