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Oil prices rise but increasing U.S. output tempers gains

Published 04/10/2017, 04:06 AM
© Reuters.  Oil prices rise but increasing U.S. output tempers gains
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Investing.com - Oil prices rose on Monday, approaching the prior sessions’ one-month highs amid concerns over mounting geopolitical risk, but industry data pointing to another increase in U.S. output capped gains.

Global benchmark Brent futures rose 39 cents or 0.69% to $55.61 a barrel on the ICE Futures Exchange in London.

U.S. crude oil was trading at $52.55 a barrel at 07.53 GMT, up 32 cents or 0.63% from its last close.

Oil prices hit one-month highs Friday as U.S. cruise missile strikes on a Syrian air base raised concerns that conflict in the oil-producing region could spread.

Both U.S. crude and Brent rose more than 3% last week, notching up a second straight weekly increase.

But gains were held in check as oil traders continued to focus on the ongoing rebound in U.S. shale production, which could derail efforts by other major producers to reduce a global supply glut.

Oilfield services provider Baker Hughes said late Friday that the number of active U.S. rigs drilling for oil rose again last week to the highest since September 2015.

Market participants, however, remained optimistic that the Organization of the Petroleum Exporting Countries would extend its current deal with non-OPEC producers to cut output beyond June in an effort to rebalance the market.

A joint committee of ministers from OPEC and non-OPEC producers will meet in late April to present its recommendation on the fate of the pact. A final decision on whether or not to extend the deal beyond June will be taken by the oil cartel on May 25.

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