2019.11.0408:52:00UTC+00Oil Prices Little Changed In Cautious Trade

Oil prices were flat to slightly lower on Monday after rallying nearly 4 percent on Friday following an upbeat U.S. jobs report and amid signs of progress in U.S.-China trade talks.

Benchmark Brent crude edged down 0.1 percent to $61.64 a barrel, while December U.S. crude futures were virtually unchanged at $56.20 a barrel.

Underpinning U.S. crude prices was a shutdown of the Keystone pipeline that sends Canadian heavy crude to the United States. Owner TC Energy Corp said on Friday work was underway to plug the pipeline in North Dakota.

While unexpectedly strong U.S. jobs data helped boost global investors' appetite for riskier assets, economic activity in the U.S. manufacturing sector contracted for the third month in a row in October, suggesting that business sentiment remains more cautious than optimistic.

Of the 18 manufacturing industries, only five reported growth in October, while 12 industries reported contraction. American manufacturers are still struggling with soft demand and weak exports amid an ongoing trade spat with China.

In Europe, final data from IHS Markit showed today that the euro area manufacturing sector shrank slightly less than initially estimated in October amid sustained weakness in output, new orders and purchasing.

The factory Purchasing Managers' Index rose to 45.9 from 45.7 in September. The indicator remained well below the 50.0 no-change mark signaling a rate of contraction that was the second-sharpest in the past seven years.