Investing.com - Crude oil futures pushed higher on Monday, extending strong gains from last week as investor confidence remained strong amid bullish chart signals.
On the New York Mercantile Exchange, crude oil for May delivery touched a session high of $53.06 a barrel, before trading at $52.11 during U.S. morning hours, up 47 cents, or 0.91%. Nymex oil advanced 85 cents, or 1.67%, on Friday to close at $51.64.
New York-traded oil prices jumped $2.50, or 5.09%, last week, the third consecutive weekly gain, amid speculation an ongoing collapse in rigs drilling for oil in the U.S. will result in lower production.
Industry research group Baker Hughes (NYSE:BHI) said late Friday that the number of rigs drilling for oil in the U.S. fell by 42 last week to 760. It was the 18th straight week of declines and the largest drop in a month.
Market players have been paying close attention to the shrinking rig count in recent months for signs it will eventually reduce the glut of crude flowing into the market.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for June delivery rose 53 cents, or 0.89%, to trade at $59.48 a barrel after hitting an intraday peak of $60.57.
On Friday, London-traded Brent prices rose $1.26, or 2.18%, to settle at $58.95. Brent futures jumped $2.92, or 5.31%, last week, as investors continued to assess the impact of an Iranian nuclear deal on global supplies.
Market experts largely estimated that a ramp-up in Iranian crude exports could take several months after Western powers negotiated a tentative nuclear deal with Tehran earlier in the month.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $7.37 a barrel, compared to $7.31 by close of trade on Friday.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.15% to trade at 99.78 early on Monday.
Demand for the dollar remained supported by expectations for higher interest rates, as investors regained confidence that the U.S. economy would continue to recover after recent economic reports pointed to a slowdown at the start of the year.
Investors looked ahead to key U.S. data later this week for further indications on the strength of the economy and the timing of an interest rate hike.
Market players are awaiting Tuesday’s report on U.S. retail sales, as well as Friday’s reports on inflation and consumer sentiment. The U.S. is also due to produce data on industrial production, building permits and housing starts throughout the week.
In China, disappointing trade data added to speculation that policymakers in Beijing may implement further stimulus measures.
China reported a trade surplus of $3.08 billion in March, compared to expectations for a surplus of $45.4 billion and down from a surplus of $60.6 in February.
Exports tumbled 15.0% from a year earlier last month, disappointing expectations for a 12.0% increase, while imports sank 12.7%, worse than forecasts for a decline of 11.7%.
The slide in imports pointed to persistent weakness in the economy, fuelling speculation policymakers will do more to boost growth.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.