SINGAPORE: Oil prices pushed higher on Monday thanks to a softer dollar after last week’s disappointing US jobs report, but gains were limited as producers increased their rig count.
The US Labor Department said Friday that just 38,000 new jobs were created last month, a quarter of what was expected.
With a US interest rate rise not now seen before September at the earliest, the dollar tumbled—making oil cheaper for anyone buying it with other currencies.
At about 6:40 a.m. local time, US benchmark West Texas Intermediate was up 42 cents, or 0.86 percent, at $49.04, while Brent gained 36 cents, or 0.73 percent, to $50.
Oil is up about 85 percent from the near 13-year lows touched at the start of the year, and key producer Abu Dhabi said the supply glut that had hammered prices was easing quicker than expected.
Ali Majed Al Mansoori, chairman of Abu Dhabi Department of Economic Development, also predicted prices could rise to as much as $60 this year.
However, analysts said gains would meet resistance as current prices are making it viable for producers to bring rigs back online.