U. S. crude oil futures shifted higher on Monday afternoon, gaining support from Wall Street's rise after data showed that the U. S. services sector expanded for the first time in a year and the dollar fell as a result. New York Mercantile Exchange natural gas futures ended sharply higher on Monday, backed by cooler U. S. weather forecasts.

A preliminary poll ahead of weekly industry and government inventory data showed forecasts that domestic crude stocks rose 2.1 million barrels in the week to Oct. 2.

Vietnam's annual crude oil exports, the country's main foreign exchange earner, are expected to drop 35 percent this year to $7.2 billion, a state-run newspaper reported. Crude oil export volume reached a three-year high of 12.8 million tonnes in the first nine months of 2009 but revenues were down 16 percent from a year earlier because of lower global crude prices.

Saudi Arabia cut the official selling price for its benchmark Saudi Light Crude oil to U. S. clients in November by $1.70 a barrel to a discount of $4.60 below U. S. light crude and cut the price of Arab Light to Asian customers by 20 cents to Oman/Dubai average plus 40 cents a barrel.

The world's benchmark Very Large Crude Carrier (VLCC) export route from the Middle East Gulf (MEG) to Japan dropped to W38.50 from W40.22 last week.

Crude oil witnessed significant rise yesterday following the rise in equities. We see a slight downside in crude oil prices during the day on demand concerns. API inventory report later in the day may give some direction to prices.