Investing.com - Oil prices pushed higher in European trade on Monday, rebounding from the prior session’s losses, with Brent futures reclaiming the key $50-level as market players eyed supply disruptions in Nigeria.
The Niger Delta Avengers militant group has claimed responsibility for three new attacks on Nigeria's oil infrastructure over the weekend, promising to cut production to zero.
On the ICE Futures Exchange in London, Brent oil for August delivery rose to an intraday high of $50.28 a barrel. It last stood at $50.21 by 07:54GMT, or 3:54AM ET, up 57 cents, or 1.15%.
On Friday, London-traded Brent dipped 40 cents, or 0.8%, to settle at $49.64 after OPEC failed to agree on a deal for a new output ceiling.
Although Saudi Arabia attempted to appease smaller members such as Venezuela, Ecuador and Nigeria by pledging to avoid major output increases in the coming months, Iran held firm on its plan to ramp up production to pre-sanction levels from 2007.
Any coordinated attempts for a comprehensive production freeze likely will not occur until at least late-November when OPEC is scheduled to meet again.
Brent prices hit an eight-month peak of $50.96 in late May as unplanned supply disruptions in Nigeria and Libya eased concerns over a global glut. Brent futures prices are up by roughly 85% since briefly dropping below $30 a barrel in mid-February.
Elsewhere, crude oil for July delivery on the New York Mercantile Exchange tacked on 58 cents, or 1.19%, to trade at $49.20 a barrel.
New York-traded oil lost 55 cents, or 1.12%, on Friday, after data showed the U.S oil rig count rose the first time in 11 weeks last week.
Oilfield services provider Baker Hughes said Friday that the number of rigs drilling for oil in the U.S. increased by nine last week to 325, ending three straight months of weekly declines.
The renewed gain in U.S. drilling activity fueled speculation that domestic production could be on the verge of rebounding in the weeks ahead, underlining worries over a supply glut.
U.S. crude futures are still up nearly 80% since falling to 13-year lows at $26.05 in February as a decline in U.S. shale production boosted sentiment. However, with prices now at levels that make drilling economical for some firms, the oil rig count might start rising further and the decline in U.S. production may slow.
Meanwhile, Brent's premium to the WTI crude contract stood at $1.01 a barrel, compared to a gap of $1.02 by close of trade on Friday.