Investing.com - Crude oil futures gained in early Asia on Monday, awaiting further estimates of supply and demand in the week ahead fromthe U.S.
Crude futures for July rose 0.14% at $60.63 a barrel on the New York Mercantile Exchange.
Last week, crude futures fell on Friday but ended higher for the week boosted by the weaker dollar as concerns over whether the recent rally in prices is running out of momentum persisted.
Brent crude for July delivery, the global benchmark, added 0.2%, to settle at $66.97 a barrel on the ICE Futures exchange on Friday. The contract rose 0.98% on the week.
The dollar weakened across the board after a series of disappointing U.S. economic reports, including industrial production, retail sales and producer prices dampened hopes for a second quarter rebound after a sharp slowdown in growth in the first three months of the year.
The data underlined expectations that the Federal Reserve will delay hiking interest rates until the economy is on a stronger footing.
A weak greenback makes dollar-denominated commodities such as oil cheaper for holders of other currencies.
Data earlier in the week showed crude stockpiles falling for the second straight week. A report from the Energy Information Administration on Wednesday showed stockpiles declining 2.2 million barrels last week.
However the report also showed that U.S. oil production increased over the week and remained close to a multi-decade high at 9.4 million barrels a day.
U.S. oil prices have staged a recent rebound after dropping more than half from June to January, amid mounting expectations that U.S. shale oil production has peaked and may start falling in the coming months.
But global oil production is still outpacing demand following a boom in U.S. shale oil production and after OPEC's decision last year not to cut production.
In its monthly report on Wednesday, the International Energy Agency said global crude supply was up 3.2 million barrels a day year-on-year in April, far outstripping the increase in demand.
The IEA estimated global oil demand growth of 1.1 million barrels per day this year.
The IEA also said the first drop in oil stocks since January the week before last did not spell the end of inventory builds, pointing to signs that petroleum product stocks are rising.
In the week ahead investors will be turning their attention to Wednesday’s Federal Reserve minutes for clues on the possible timing of a rate increase. Friday’s data on U.S. inflation will also be closely watched.
Meanwhile, the euro zone is to release data on private sector activity and China is to publish preliminary data on manufacturing activity.
U.S.. industry groupthe American Petroleum Institute will release its estimates of crude and refined products stocks on Tuesday and the U.S. Department of Energy will release its more closely-watched weekly report on crude stockpiles on Wednesday.
On Monday, Switzerland is to release a report on retail sales.
Markets in Canada will be closed for the Patriots day holiday.