Oil prices settled higher on Monday after data pointed to moderating U.S. output. The U.S. oil rig count declined by two to 756 rigs last week, according to oilfield service firm Baker Hughes on Friday, ending a record 23-straight weeks of rising number of rigs.
Analysts said the news led investors to believe that U.S. shale production may have hit a bottleneck after prolonged low prices.
Meanwhile, upbeat U.S economic data also fueled market sentiment as investors looked for rising demand. The June purchasing managers index came in at 57.8 percent, an increase of 2.9 percentage points from the May reading of 54.9 percent and beating market consensus of 55.1 percent, the Institute for Supply Management said Monday.
The West Texas Intermediate for August Delivery added 1.03 U.S. dollars to settle at 47.07 dollars a barrel on the New York Mercantile Exchange, while Brent crude for September delivery gained 0.91 dollars to close at 49.68 dollars a barrel on the London ICE Futures Exchange.
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