West TX Oil Above $56 on Lower U.S. Rig Count

Oil prices rose on Monday, extending last week’s gains as a drop in the number of U.S. rigs drilling for crude pointed to lower supply later in the year, while China’s latest stimulus measure also underpinned the market.

U.S. oil drilling rigs fell for a record 19th straight week to the lowest since 2010, data from Baker Hughes showed on Friday.

While the drop slowed, suggesting the collapse in drilling could be coming to an end, Schlumberger – the world’s largest oilfield services company – said an eventual recovery in U.S. oil drilling activity may never reach last year’s frenzied pace.