London — Oil prices rose on Monday but gains were limited as investors gauged whether an increase in US drilling rigs and record stockpiles might offset the existing push by producers to cut output and bring the market into balance. Brent futures were up 50 US cents at $56.31 a barrel at 9.48am GMT, while US West Texas Intermediate crude rose 41c to $53.81. Investors have certainly taken Opec members at their word on their commitment to cut production, and now hold more US crude futures and options than at any time on record. But evidence of rising output in the US has tempered money managers’ appetite to push prices higher. Since the start of February, oil prices have gained about $2. "There is still a general consensus that the Opec/nonOpec agreement helps supply to get in line with demand. This bullish stance is countered by the ever-increasing inventories in the US and rising rig counts," PVM Oil Associates strategist Tamas Varga said in a note. In 2016, oil cartel Opec and othe...
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