U.S. crude settled higher on Monday as a declining dollar offset global oversupply concerns stemming from an announcement by Saudi Arabia that it was pumping around 10 million barrels per day, near a record high.
U.S. WTI crude closed up 88 cents, at $47.45 a barrel. Brent crude reversed earlier losses, rising 60 cents to $55.90 a barrel. Oil prices have seesawed in recent days, weighed down by oversupply concerns but boosted by the weakening of the dollar ahead of the expected end of years of zero-interest rate policy in the United States later this year.
Houston-based Schlumberger, the world’s top oilfield services provider, said oil prices could increase in the second half of the year as it expected global industry spending on exploration and production to drop 10 percent to 15 percent in 2015.
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