Oil Holds Gain as U.S. Rigs Data Gives Respite From Trade Gloom - Bloomberg

Oil Holds Gain as U.S. Rigs Data Gives Respite From Trade Gloom - Bloomberg:

Oil held gains above $58 a barrel after American explorers reduced drilling activity to the least in more than a year, providing some respite from a demand outlook thrown into doubt by the U.S.-China trade war.

Futures in New York edged lower after closing up 1.2% on Friday. Working U.S. rigs fell for the fifth time in six weeks to reach the lowest level since March 2018, according to Baker Hughes data released Friday. As tensions with China simmer, President Donald Trump is in Tokyo to try and reach a deal after the White House threatened to raise tariffs on Japanese cars.

Oil posted its biggest loss of the year last week -- including a 5.7% drop on Thursday -- as the intensifying trade war caused investors to reassess their outlook for the global economy. Even before the plunge, money managers had reduced bullish bets on West Texas Intermediate to the lowest in two months. Meanwhile, the situation in the Middle East remained tense but didn’t worsen, allaying fears that crude shipments would be disrupted.