Oil prices rebounded Monday as investors worried about plummeting Nigerian production after a militant attack in Nigeria.
Output of Nigeria's Bonny Light crude has fallen by an estimated 170,000 barrels per day (bpd) following recent attacks on pipeline infrastructure, according to media reports Monday.
Traders were also encouraged by the speculation that the Federal Reserve will not raise interest rates this month, which will weaken the U.S. dollar and bolster the dollar-priced crude.
Fed Chair Janet Yellen said at the World Affairs Council of Philadelphia Monday that the overall labor market is quite positive, although the recent slowdown in jobs bears "close watching". She said additional rate increases would still probably be appropriate but did not give a specific time period for the next hike.
The West Texas Intermediate for July delivery added 1.07 U.S. dollars to settle at 49.69 dollars a barrel on the New York Mercantile Exchange, while Brent crude for August delivery gained 0.91 dollar to close at 50.55 dollars a barrel on the London ICE Futures Exchange.
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