Crude oil jumps on European, U.S. manufacturing reports

Crude prices rose on Monday after improving manufacturing barometers in the U.S. and Europe fanned expectations that the global economy is on the mend and will demand more fuels and energy going forward.

On the New York Mercantile Exchange, light sweet crude futures for delivery in August traded up 1.38% at USD97.89 a barrel on Monday, off from a session high of USD98.28 and up from an earlier session low of USD96.08.

U.K.-based Markit's final euro zone purchasing managers' index hit a 16-month high of 48.8 in June, beating market calls for a 48.7 reading, which pushed up prices of crude, a growth-sensitive commodity.

Spain’s manufacturing PMI rose to 50.0 in June, the highest level in two years, up from 48.1 in May and above expectations for a 48.5 reading.

France’s manufacturing PMI came in at 48.4 compared to market calls for 48.3, but Germany’s manufacturing PMI came in at 48.6, missing expectations for a 48.7 reading.

Elsewhere, official data revealed that the euro zone's unemployment rate hit 12.1% in May from 12.0% in April, slightly lower than expectations for a 12.3% reading.

The euro zone's consumer price index rose to 1.6% in June from 1.4% in May, in line with expectations.

Across the Atlantic, manufacturing output is on the rise in the U.S. as well.

The Institute for Supply Management said its manufacturing purchasing managers’ index rose to 50.9 from 49.0 in May, above expectations for a reading of 50.5.

Concerns that protests in Egypt may spread to oil-rich nations in the Middle East and disrupt supply bolstered prices as well.

On the ICE Futures Exchange, Brent oil futures for August delivery were up 0.68% at USD102.86 a barrel, up USD4.97 from its U.S. counterpart.