Crude oil prices rallied Monday amid further speculation the Federal Reserve will delay raising interest rates until next year.
The Institute for Supply Management’s nonmanufacturing index came in lower than expected today, making an October rate hike extremely unlikely.
The ISM said its non-manufacturing index dropped to 56.9 in September from 59.0 in August, although a reading above 50 indicates growth in the service sector. Economists had expected the index to dip to 58.0.
Taken with Friday’s lackluster jobs report, the Fed might wait until next spring to tighten.
Meanwhile, Russia reportedly wants to meet with OPEC and non-OPEC nations to discuss this year’s big drop in oil prices.
Crude oil for November was up 72 cents at $46.26 a barrel. Gasoline futures jumped 3 percent.
The material has been provided by InstaForex Company – www.instaforex.com