West TX Oil Below $59 on Signs of U.S. Shale Oil Recovery

Oil came under pressure on Monday on signs a multi-week rally was encouraging a rejuvenation in already bloated U.S. shale supplies.

U.S. light crude closed down 14 cents, or 0.2 percent, at $59.25 a barrel. U.S. crude prices gained on a weekly basis for an eighth straight week last week while Brent had its first profit-taking in five weeks.

Meanwhile, Brent crude futures, the more globally referenced benchmark for oil, fell 40 cents to $65 a barrel.  In a sign the market was responding to those gains, rigs for drilling oil in the voluminous Permian shale basin rose for the first time this year after months of cutbacks.


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