Brent crude oil prices rose on Monday, lifted by a plunge in the dollar that could spur demand just as attacks on Nigerian oil infrastructure tighten supplies, but signs of recovering US output capped gains.
Brent crude futures were up 59 cents at $50.23 a barrel. US crude futures were up 57 cents at $49.19 a barrel, Reuters reported.
Traders said oil prices rose on a sharp fall in the dollar on Friday after weak US jobs data sparked concerns over the state of the world’s biggest economy, cutting expectations of a near-term cut in US interest rates.
A weaker dollar supports fuel demand in the rest of the world as it makes dollar-traded oil imports cheaper.
The Muslim holy month of Ramadan, which began in some countries on Monday, is also seen as supportive of prices as demand picks up in most Muslim countries.
Traders said prices were also propped up by attacks on oil infrastructure in Nigeria, which has already sent the country’s output to more than 20-year lows.
So far, supply cuts like those in Nigeria or Libya, have been met by rising output in the Middle East, especially Iran, which has ramped up output since the end of international sanctions against it in January.
Oil’s price rally, however, was capped on signs of increased output in the United States where energy firms this week added oil drilling rigs for the second time this year, energy services company Baker Hughes Inc said.
