Oil logs monthly gains for first time since September

Oil drilling rigs

Oil prices closed lower today, Jan. 31, amid renewed demand concerns following the release of data showing a contraction in industrial activity in the second largest economy in the world for the fourth month in a row as China’s purchasing manager’s index reached 49.2 points in January.

Brent crude for April delivery (the most active) fell 2.35%, or $1.95, to settle at $80.55 per barrel. March contracts (which expire today) declined to $81.71, but ended a three-month losing streak, achieving gains of more than 6% in January.

WTI crude for March delivery fell by 2.55%, or $1.97, to $75.85 per barrel, but achieved monthly gains of 5.6%.

Data from the US Energy Information Administration revealed that oil inventories added 1.2 million barrels during the week ended Jan. 26, while expectations indicated a decrease of 800,000 barrels.

Separate data showed that the volume of monthly US crude production decreased to 399.2 million barrels in November, from 409.9 million barrels in October, despite an increase in the daily production rate to 13.31 million barrels, from 13.22 million barrels.