U.S. oil prices rose on Monday as a weak U.S. dollar prompted buying, while Brent prices fell as concerns about China’s slowing economy dragged global equities down and outweighed low Libyan output.
The U.S. dollar fell to its lowest in more than three months against the yen, making dollar-denominated commodities cheaper for buyers using the Japanese currency. Shanghai shares hit a three-week low and European equities slumped after data on Sunday showed growth in average new home prices in China slowed to a near one-year low in April.
Meanwhile, Libya’s major western oilfields, El Sharara and El Feel, remained shut a week after the government said it reached a deal with protesters to reopen them. National output has been capped at 210,000 barrels per day (bpd), far below the 1.4 million bpd produced until mid-2013.