Oil prices rose in Asia Monday, extending last week´s gains but the persistent global supply glut will likely cap advances, analysts said.
US benchmark West Texas Intermediate added 11 cents to $51.75 while Brent was up 12 cents at $57.99 in afternoon trade.
“There has been a continuation in the rise of oil prices from Friday´s session, but the market has started this week cautiously due to the ongoing oversupply situation,” said Michael McCarthy, chief market strategist with CMC Markets in Sydney. Both contracts closed last week up more than five percent thanks to a drop in the number of US oil rigs in operation, better economic data and easing expectations that Iranian oil would return to the market soon after a deal with Western powers over its nuclear programme. But Sanjeev Gupta, who heads the Asia-Pacific oil and gas practice at professional services firm, said: “Increases in oil inventory in the US and the announcement of record output of crude by Saudi Arabia in March helped to limit gains in benchmark prices.”