Oil extended gains after capping its best week in almost two months as an escalation of fighting in OPEC producer Libya overshadowed the biggest drop in U.S. active rigs since May.
Futures gained as much as 0.7 percent in New York after rising 4.9 percent last week. Libya’s internationally-recognized government vowed to counterattackagainst forces loyal to strongman Khalifa Haftar that are trying to enter the capital Tripoli. American rigs climbed by 15 to 831 in the first increase since mid-February, according to data from oilfield services provider Baker Hughes.
West Texas Intermediate for May delivery climbed 38 cents, or 0.6 percent, to $63.46 a barrel on the New York Mercantile Exchange as of 10:34 a.m. in Singapore. Prices rose 1.6 percent to settle at $63.08 on Friday, the highest closing level since Nov. 5.
Brent for June settlement rose 0.6 percent to $70.75 a barrel on the London-based ICE Futures Europe exchange. The contract added 1.4 percent to $70.34 on Friday, taking its weekly gain to 2.9 percent. The global benchmark crude was at a premium of $7.21 to WTI for the same month.
Source : Bloomberg