Investing.com - Oil prices turned higher in choppy North American trade on Monday, after falling to a two-month low overnight amid signs of an ongoing recovery in U.S. drilling activity.
Crude oil for August delivery on the New York Mercantile Exchange fell to an intraday low of $44.53 a barrel, a level not seen since May 11. It last stood at $45.66 by 13:35GMT, or 9:35AM ET, up 25 cents, or 0.55%.
Oilfield services provider Baker Hughes said late Friday that the number of rigs drilling for oil in the U.S. increased by 10 last week to 351, marking the fifth increase in six weeks.
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.
New York-traded oil futures sank $3.70, or 7.31%, last week, its biggest weekly loss in almost six months.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for September delivery tacked on 19 cents, or 0.41%, to $46.95, after sliding to a session low of $45.90, the weakest since May 11.
Last week, London-traded Brent futures dropped $3.84, or 7.13%, its worst weekly performance since mid-January, amid growing anxiety over the economic impact of Britain's vote to leave the European Union.
The news sparked concerns that Europe will fall back into recession, putting more pressure on the global economy and undermining future oil demand prospects.
In the week ahead, oil traders will be focusing on U.S. stockpile data on Tuesday and Wednesday for fresh supply-and-demand signals.
Investors will also keep an eye out for monthly reports from the Organization of Petroleum Exporting Counties and the International Energy Agency to gauge global supply and demand levels.
Market players will also continue to monitor supply disruptions across the world for further indications on the rebalancing of the market.