The West Texas Intermediate for February delivery increased 0.56 US dollar to settle at 48.52 dollars a barrel on the New York Mercantile Exchange, while Brent crude for March delivery rose 0.27 dollar to close at 57.33 dollars a barrel on the London ICE Futures Exchange. In fact, the continuous low price of oil is depicting a weaker economy of the world and the surging U.S. production. The global benchmark crude traded at an US$8.66 a barrel premium to WTI for the same month.
U.S. West Texas Intermediate (WTI) crude oil futures climbed 59 cents, 1.22 percent, to $49.11 per barrel.
Futures in NY increased as much as 1.9% following six days of gains, the longest streak of increases since July 2017.
Continuing to underpin the markets is optimism that the on-going OPEC-led supply cuts will trim the excess global supply and stabilize prices.
Since the turn of the year investors holding oil have been helped by Opec's output cuts.
PRICE Futures Group senior analyst Phil Flynn on the outlook for oil prices and the impact on the US soybean market from the tariff tensions with China.
"If compliance by OPEC and the allied non-OPEC countries is similarly high as in the agreement two years ago, the oil market is likely to be rebalanced during the first half year", Commerzbank wrote in a note on Monday. Record high crude oil production C-OUT-T-EIA has pushed up USA inventories.
"When stock markets are strong oil usually follows suit", PVM Oil Associates strategist Tamas Varga said.
The America-China trade talks are showing signs of progress.
US Commerce Secretary Wilbur Ross said on Monday that Beijing and Washington could reach a trade deal that "we can live with" as dozens of officials from China and the United States held talks in a bid to end a trade spat that has roiled global markets since a year ago. The rally's been fueled by brightening economic outlooks as well as growing confidence that the Organization of Petroleum Exporting Countries, Russia and other allies will restrain production enough to avoid an oversupply.
S&P Global Ratings said it had lowered its average oil price forecasts for 2019 by $10 per barrel to $55 and $50 per barrel, respectively.
Record high crude oil production C-OUT-T-EIA has also pushed up US inventories, which rose by almost 17 percent in 2018 to their highest in well over a year, according to weekly data by the Energy Information Administration (EIA) on Friday.
Brent crude has risen by around $4 since the cuts came into force on 1 January.