SEOUL (Reuters) – Oil prices rose early on Monday on a weaker dollar, but increased U.S. drilling activity stoked worries that a global supply glut would persist despite efforts by some producers to curb output.
Brent crude futures were up 24 cents, or 0.53 percent, at $45.78 per barrel at 0047 GMT (8.47 p.m. ET).
U.S. West Texas Intermediate (WTI) crude futures were up 21 cents, or 0.49 percent, at $43.22 per barrel.
The U.S. dollar index stayed low on Monday against a basket of currencies amid fading expectations for the Federal Reserve to hike interest rates again later this year. A weaker dollar also makes oil cheaper for countries using other currencies.
“Commodities stabilized after a turbulent week where most sectors suffered large falls,” ANZ bank said in a note. “A slightly weaker U.S. dollar also helped improve investor appetite.”
Although oil prices have bounced back from 10-month lows, they are still down about 13 percent since late May, when the Organization of the Petroleum Exporting Countries (OPEC) and some other producers agreed to extend a deal to reduce output by 1.8 million barrels per day (bpd) until the end of next March.
But crude supplies in the United States, which is not part of the OPEC-led deal, have been dampening the impact of curbs.
U.S. energy firms added 11 oil rigs in the week to June 23, bringing the total count up to 758, the most since April 2014, according to data from energy services firm Baker Hughes Inc.
Amid the rise in U.S. drilling activity, money managers cut net long U.S. crude futures and options holdings to their smallest long position since November.
(Reporting by Jane Chung; Editing by Joseph Radford)