Oil steadies near $57 on ample US supply

Oil steadied near $57 barrel on Monday as the Organization of the Petroleum Exporting Countries’ (Opec) supply cuts and rising tensions between the US and Iran were countered by ample inventories and signs that higher prices will revive US output.

The Trump administration’s new sanctions against Iran, though not affecting oil output, raised concern about the potential for further developments that could hinder export growth in Opec’s third-largest producer. US energy companies added oil rigs for a 13th week in 14, data showed on Friday. Despite the Opec cuts, US crude inventories rose by more than expected last week.

Brent crude was trading at $56.86 a barrel by 1223 GMT, up five cents, having touched an intra-day high of $57.13. US crude was up 15 cents at $53.98.

“The tug-of-war between oil bulls and bears continued last week and there are no clear signs who could turn out to be the winner,” said Tamas Varga of oil broker PVM.

“The result is a rangebound market where buyers shy away on a pop over $57 basis Brent, but they feel a dip to the $54 level is an attractive purchase.”

Tension between Tehran and Washington has risen since an Iranian missile test that prompted the US to impose sanctions on individuals and entities linked to the Revolutionary Guards.