The oil prices rebounded in Asian trading after weakening of the US dollar. The US light WTI crude recorded a slight increase in price of 0.06% to 53.04 USD per barrel, while the European benchmark Brent oil was traded with a modest increase of 0.07% to 55.76 USD per barrel.
The later on Tuesday are expected the data to the American Petroleum Institute for weekly change oil reserves in the US. On Wednesday will be released the official figures of Energy Information Administration. The analysts expect an increase of 2.38 million barrels of the reserves in the week ended February 3.
On Friday, the company for services in the oil industry Baker Hughes reported that the number of rigs in the US increased by 17 during the period and this is the 13th week with an increase for the last 14 weeks. Thus the total number of oil rigs in the US becomes 583, which is the highest level since 2015.
The price support came from an effort by the Organization of the Petroleum Exporting Countries and other exporters to cut output by almost 1.8 million barrels per day (bpd) in the first half of 2017. But while OPEC and Russia have together cut at least 1.1 million bpd so far, rising US production, as well as signs of slowing demand growth, threaten to undermine these efforts.
The general perception is that OPEC is cutting production, which is supporting prices, but high stock levels, rising rig counts and growing US production are capping gains.