Investing.com - West Texas Intermediate oil futures shook off earlier weakness on Monday to trade higher as traders digested the latest batch of U.S. economic data in their quest to gauge the strength of the economy.
On the New York Mercantile Exchange, crude oil for delivery in April climbed 49 cents, or 0.98%, to trade at $50.25 a barrel during U.S. morning hours after hitting an intraday low of $48.72.
The Institute for Supply Management said its index of purchasing managers fell to a 13-month low of 52.9 in February from a reading of 53.5 in January. Analysts had expected the manufacturing PMI to decline to 53.0 in February.
The report came after the Commerce Department said that personal spending fell 0.2% in January, worse than expectations for a decline of 0.1% and following a drop of 0.3% in December.
It was the first back-to-back decline in consumer spending since early 2009. Consumer spending is the single biggest source of U.S. economic growth, accounting for as much as two-thirds of economic activity.
The report also showed personal income rose 0.3% in January, below forecasts for a 0.4% increase.
Gains were limited as investors continued to focus on a glut in North American supplies.
Industry research group Baker Hughes (NYSE:BHI) said Friday that the number of rigs drilling for oil in the U.S. fell by 33 last week to 986, the lowest since June 2011.
The number of oil rigs has declined in 17 of the last 20 weeks since hitting an all-time high of 1,609 in mid-October.
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.
However, total U.S. crude oil inventories stood at 434.1 million barrels as of last week, the most in at least 80 years, indicating that cheap prices have yet to affect output.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for April delivery tumbled $1.14, or 1.81%, to trade at $61.45 a barrel amid easing concerns over a disruption to supplies from Libya.
London-traded Brent prices rose $2.21, or 3.3%, last week, as worries over disruptions to exports and production in Libya and Iraq buoyed prices.
Iraq's oil minister, Adel Abdel Mehdi, said on Sunday he expected to see crude prices at around $65.
Saudi Arabian oil minister Ali al-Naimi said last week that oil markets have settled down after a prolonged period of volatility late last year.
London-traded Brent prices soared $9.54, or 15.31%, in February, the first monthly gain since June and the biggest monthly increase in nearly six years.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $11.20 a barrel, compared to $10.29 by close of trade on Friday.
Oil prices have fallen sharply in recent months as the Organization of Petroleum Exporting Countries resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.