Crude oil futures ended higher on Monday despite reports about a likely increase in oil output from major producers.
Oil’s uptick was supported by last Friday’s data from Baker Hughes that said the oil rigs count in the U.S. fell by 9 to 980 in the week.
However, oil’s gains were just modest due to persisting concerns about a likely drop in demand for crude in the event of further escalation in U.S.-China trade tensions.
Traders now await supply data from the American Petroleum Institute and the Energy Information Administration, due on Tuesday and Wednesday, respectively.
Crude oil futures for October ended up $0.15, or 0.20%, at $68.87, the highest close in three weeks.
On Friday, crude oil futures ended up $0.89, or 1.3%, at $68.72 a barrel. Oil futures gained 5.4% last week.
According to reports, a committee of OPEC and non-OPEC producers revealed further progress in easing output curbs.
The compliance rate with the production cut agreement that was implemented in 2017, fell to 109% in July, according to a report from Reuters. The committee had reported compliance of 121% in June and 147% in May.
Meanwhile, traders expect a major drop in supply once a second round of U. S. sanctions targeting Iran’s valuable oil and energy sector come into effect in early November.