Oil prices struggle for direction in holiday-thinned trade

Published 2016-07-04, 09:35 a/m
© Reuters.  Oil struggles for direction in holiday trade
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Investing.com - Oil prices struggled for direction in North American trade on Monday, flipping between small gains and losses as market players monitored supply disruptions across the world for further indications on the rebalancing of the market.

The Niger Delta Avengers militant group has claimed responsibility for five new attacks on Nigeria's oil infrastructure over the weekend, dealing a blow to the government’s effort to enforce a cease-fire.

Volumes were expected to be thin, as U.S. stock markets are closed for the Independence Day holiday. Trading in oil futures will close at 1:00PM ET.

On the ICE Futures Exchange in London, Brent oil for September delivery dipped 6 cents, or 0.12%, to trade at $50.29 a barrel by 13:35GMT, or 9:35AM ET.

London-traded Brent futures jumped $1.92, or 4.01%, last week, its best weekly performance in more than a month, amid subsiding fears about the Brexit referendum’s impact on global crude demand.

Elsewhere, crude oil for August delivery on the New York Mercantile Exchange inched down 7 cents, or 0.14%, to trade at $48.92 a barrel.

Last week, New York-traded oil futures advanced $1.18, or 2.83%, the first weekly rise in three weeks.

Signs of a potential recovery in U.S. drilling activity remained in focus. According to oilfield services provider Baker Hughes, the number of rigs drilling for oil in the U.S. rose by 11 last week to 341, marking the fourth increase in five 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.

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