FX.co ★ Oil Prices Hold Steady On China Stimulus Bets

Oil prices gained more than 1 percent on Monday as weak Chinese data raised hopes for additional stimulus.

Benchmark Brent crude futures jumped 1.2 percent to $76.28 per barrel, while WTI crude futures were up 1.2 percent at $71.47.

A private survey showed activity in China's manufacturing sector slowed in June.

The Caixin/S&P Global manufacturing purchasing managers' index dropped to 50.5 from 50.9 in May, raising calls for more stimulus to boost growth in the world's second-largest economy.

Business surveys from other parts of Asia and Europe also painted a gloomy picture, as traders brace up for tighter supply.

The one million barrel per day of extra output cut by Saudi Arabia, the top producer of the OPEC cartel, takes effect this month and it remains to be seen if it will extend the reduction beyond July.

According to Bloomberg, some expect the production cut to be extended through August as well.

Investors also weighed another round of impressive U.S. economic data against a hawkish rate outlook from central banks.