13.11.201702:57:00UTC+00Oil Trading Cautious on Escalating Middle East Tensions, Rise in U.S. Drilling

Oil markets moved with a cautious sentiment on Monday amid persisting geopolitical tensions in the Middle East and after an increasing rig count in the U.S. indicated producers are starting to step up production.

Brent crude futures traded at $63.55 per barrel, 3 cents higher from their previous close. Meanwhile, U.S. WTI crude futures traded at $56.79 per barrel, rising 5 cents from their last close.

Traders stated crude prices were generally receiving sufficient support as ongoing production cuts led by OPEC along with other producers have helped in a significant reduction in surplus supplies that has been weighing down the markets since 2014.

In the fundamental aspect of supply, tensions in the Middle East increased the prospects of production disruptions.

Regardless of the Middle East tensions and OPEC-led led production cuts, traders were wary in betting on further price rallies due to a rise in U.S. drilling activity. In the latest week, U.S. drillers added nine oil rigs, marking the biggest increase since June and bringing the total number to 738, data from Baker Hughes showed.