Oil steady in cautious trade as tension in Middle East provides support
Singapore — Oil trading was cautious on Monday amid tension in the Middle East and after a rising rig count in the US suggested producers there are preparing to increase output. Brent crude futures were at $63.58 a barrel at 2.13am GMT, up 6c from their last close. US West Texas Intermediate (WTI) crude was at $56.81 a barrel, up 7c from its last settlement. Traders said crude prices were generally well supported as ongoing output cuts led by oil cartel Opec and Russia have contributed to a significant reduction in excess supplies that have been dogging markets since 2014. Tension in the Middle East raised the prospects of supply disruptions, traders said. Bahrain said at the weekend that an explosion that caused a fire at its main oil pipeline on Friday was caused by sabotage, linking the attack to Iran, which denied any role in the incident. Despite the Middle East tension and Opec-led supply cuts, traders were cautious in betting on further price rises, not least because of an in...
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