Oil prices rise on lower U.S. drilling activity, trade tension weighs
U.S. WTI crude futures CLc1 were at $65.21 barrel at 0122 GMT, up 27 cents, or 0.4 percent, from their previous settlement.
Brent crude futures LCOc1 were fetching $69.71 per barrel, up 37 cents, or 0.55 percent.
Shanghai September crude futures ISCc1 were at 415.6 yuan ($66.26) per barrel, up 0.9 percent.
Innes said prices were also supported by a weekly report that there was a drop in activity of drilling for new oil production in the United States.
Baker Hughes published its North American rig count report on Thursday, one day earlier than usual, due to the Good Friday holiday on March 30.
Oil prices have generally been supported by supply restraint led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia, which started in 2017 in order to rein in oversupply and prop up prices.
Rising trade tensions between the U.S. and China are likely to weigh on sentiment and could make for volatile trading in the coming days, traders and analysts said.
China slapped extra tariffs of up to 25 percent on 128 U.S. products including frozen pork, as well as wine and certain fruits and nuts, in response to U.S. duties on imports of aluminum and steel, the country’s finance ministry said on Sunday night.
“Investors took their cue from falling U.S drilling counts,” Wang Xiao, head of crude oil research with Guotai Junan Futures said. “But increasing trade friction between China and U.S. is likely to rock global markets and tarnish bullish sentiment in crude oil markets.”
Trading volumes on Monday are likely to be low as many countries, especially in Europe, will still be on Easter holiday.