Investing.com - Crude oil futures turned higher on Monday, as market players continued to monitor developments surrounding talks between Iran and world powers over Tehran's nuclear program.
On the New York Mercantile Exchange, crude oil for May delivery hit an intraday low of $47.66 a barrel, before rebounding to trade at $49.03 during U.S. morning hours, up 16 cents, or 0.33%. On Friday, Nymex oil futures plunged $2.56, or 4.98%, to settle at $48.87.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for May delivery tacked on 10 cents, or 0.19%, to trade at $56.52 a barrel after touching a session low of $55.34. London-traded Brent lost $2.78, or 4.7%, on Friday to close at $56.41.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $7.49 a barrel, compared to $7.54 by close of trade on Friday.
Oil prices found support after Russia’s Foreign Minister Sergei Lavrov left Iranian nuclear talks in Switzerland on Monday afternoon to return to Moscow, fuelling speculation that western powers and Tehran will fail to reach an agreement before Tuesday's deadline.
Prices were down sharply during the Asian session as any sign of a deal between Iran and the west could result in a flood of Iranian crude returning to the market.
Meanwhile, market players continued to monitor development in Yemen after Saudi Arabia and a coalition of Gulf region allies launched air strikes last week to counter Iran-backed Houthi rebels besieging the southern city of Aden.
However, fears over a disruption to supplies from the region faded as Yemen is only a small crude exporter and oil tankers could avoid passing the Bab el-Mandeb Strait, which connects the Gulf of Aden with the Red Sea, to reach their ports of destination.
Approximately 3.8 million barrels per day of crude and oil products flow through the strait.
Elsewhere, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.5% to 98.12 early on Monday. The index slid 0.66% last week, the second consecutive weekly decline.
The dollar pushed higher against the euro and the yen after Federal Reserve Chair Janet Yellen reiterated Friday that the bank is likely to start raising interest rates later this year.
Meanwhile, the Commerce Department said in a report earlier that personal spending inched up 0.1% last month, below expectations for a gain of 0.2%, while personal income rose 0.4%, above forecasts for a 0.3% increase.
The core PCE price index inched up 0.1% in February, in line with expectations. On an annualized basis, the core PCE price index rose 1.4%, above forecasts for 1.3%.
Investors were turning their attention to Friday’s U.S. employment report for February for further indications on the future path of monetary policy.
A strong U.S. nonfarm payrolls report was likely to add to speculation over when the Federal Reserve will begin to raise interest rates, while a weak number could boost gold by undermining the argument for an early rate hike.