Crude-oil futures rebounded in Asian trade Monday as investors weighed weak U.S. economic data and other developments in the region.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded at $93.36 a barrel at 0739 GMT, up $0.66 in the Globex electronic session. May Brent crude on London's ICE Futures exchange rose $0.92 to $105.04 a barrel.
Oil prices slipped last week on weak U.S. jobs data, with Brent prices falling more sharply on Friday to their lowest since late July. The spread between Brent and Nymex crude oil is currently around $11.55 a barrel.
"One key difference between now and July last year is funds are notably longer," ANZ Bank said in a note. It said net speculative positions are much higher both in Brent and Nymex crude-oil contracts, leaving prices in the two markets susceptible to more declines if further liquidation by money managers occurs.
Meanwhile, investors in Asia are cautious given continued war rhetoric from North Korea, which may carry out a missile test this week, and a growing number of bird-flu cases in mainland China. China is also expected to release key economic data including inflation and trade figures later this week.
"Global risk sentiment is likely to start the week on a soft tone amid a confluence of dovish economic data and geopolitical and bird-flu concerns in Asia," Singapore-based OCBC Bank said in a note to clients.
Talks over Iran's nuclear program ended on Saturday with no breakthrough and no date for new talks has been set, but diplomats said Iran showed willingness to discuss international concerns. The lack of an agreement boosts the risk premium in oil prices.
On Sunday, Japan's nuclear regulator said contaminated water has seeped into the soil at the site of the Fukushima Daiichi nuclear power plant, a development that's likely to signal continued high imports of crude amid a continuing delay in the restarting of the country's nuclear reactors.
Uncertainty in global supply supported crude prices.
The main militant group in Nigeria's oil-producing region, MEND, has claimed responsibility for an attack on security forces that allegedly killed at least 15 officers. The statement couldn't be verified, AFP reported.
Brent oil prices were also underpinned by an expected strike by oil workers in Norway.
"[We] highlight a potential supply disruption in the North Sea due to a strike planned by offshore workers in Norway that could potentially result in a widening of Brent time spreads, which have thus far narrowed on the back of an improvement in supplies in the region combined with refinery maintenance," Barclays said in a note.
Nymex reformulated gasoline blendstock for May--the benchmark gasoline contract--rose 280 points to $2.8916 a gallon, while May heating oil traded at $2.9343, 245 points higher.
ICE gasoil for April changed hands at $883.50 a metric ton, up $3.50 from Friday's settlement.
