Investing.com - West Texas Intermediate oil futures traded close to the highest level since July on Monday, amid indications U.S. oil drillers are cutting back on production following a collapse in prices over the summer.
Crude oil for delivery in November on the New York Mercantile Exchange tacked on 24 cents, or 0.48%, to trade at $49.87 a barrel during European morning hours.
There will be no floor trading on the Nymex on Monday because of the Columbus Day holiday in the U.S. All electronic transactions will be booked with Tuesday's trades for settlement.
On Friday, Nymex oil prices rallied to $50.92, a level not seen since July 21, after industry research group Baker Hughes (N:BHI) said that the number of rigs drilling for oil in the U.S. decreased by 9 last week to 605, the lowest since July 2010 and the sixth straight weekly decline.
A lower U.S. rig count is usually a bullish sign for oil as it signals potentially lower production in the future.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for December delivery inched up 32 cents, or 0.6%, to trade at $53.23 a barrel. On Friday, Brent futures declined 47 cents, or 0.88%, after hitting a seven-week high of $54.36.
The oil market has been volatile in recent months amid uncertainty about how quickly the global glut of crude is set to shrink. Despite this tighter outlook for North America, output remains robust in other countries.
Saudi Arabia and other Gulf OPEC members have indicated they will continue to stick to their policy of defending market share by keeping production high.
Oil prices have lost nearly 60% since last summer as lingering concerns over a glut in world markets drove down prices.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $3.36 a barrel, compared to $3.28 by close of trade on Friday.