Oil prices stabilised on Monday after witnessing a drop by around 2% on Friday over concerns of a trade dispute between the US and China, and an increase in drilling activity in the US.
Th global oil market is also keenly monitoring the situation in Syria following reports of the US striking an air base there.
US WTI crude futures CLc1 were up by 28 cents, reaching $62.34 a barrel, while Brent crude futures LCOc1 grew 32 cents to reach $67.43 per barrel, reported Reuters.
Prices dropped on Friday after US President Donald Trump threatened to slap new tariffs on China, which raised concerns in the global markets of a trade war between the two major economies.
Shanghai crude futures ISCc1 dropped 0.6% to reach around CNY400 ($63.43) per barrel.
Singapore-based Phillip Futures was quoted by the news agency as saying: “Oil prices have been susceptible to the brewing trade tensions between China and the US, however, fundamental support levels have been demonstrated with OPEC’s suggestion on an production limit extension into 2019.”
Oil prices picked up due to robust demand, as well as output reduction by OPEC and its allies.
OPEC’s second largest producer Iraq stated that it plans to keep the prices steady for its crude supplies in May.
General Electric’s Baker Hughes energy services firm told the news agency that the US market saw 11 rigs being added to production in the week up to 6 April, taking the total rig count to 808, which is the highest since March 2015.
With the increase in US production, the Venezuelan supply disruption will be negated.