Oil slipped further below $57 barrel on Monday as a stronger dollar and ample U.S. supplies outweighed OPEC output curbs and rising tensions between the United States and Iran.
The dollar fell 0.3 percent versus a basket of currencies. U.S. energy companies added oil rigs for a 13th week in 14, data showed on Friday, and U.S. crude inventories rose by more than expected last week.
Brent crude was trading at $56.56 a barrel by 1402 GMT, down 25 cents, having touched an intra-day high of $57.13. U.S. crude was down 13 cents at $53.70.
“It’s most likely the stronger U.S. dollar,” said Commerzbank analyst Carsten Fritsch of the reason for the dip in oil. A stronger dollar makes crude more expensive for other currency holders and usually weighs on the oil market.
Oil prices, while supported by supply cuts agreed by the Organization of the Petroleum Exporting Countries and a new spike in tension between Iran and the United States, are struggling for new direction.
“The tug-of-war between oil bulls and bears continued last week and there are no clear signs who could turn out to be the winner,” said Tamas Varga of oil broker PVM.
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