Oil prices mixed on Yemen woes, US crude oversupply
World oil prices traded narrowly mixed Monday as traders assessed escalating violence in Yemen and the prospect of another rise in US crude inventories.
West Texas Intermediate (WTI) for June delivery edged up 16 cents, closing at $56.99 a barrel on the New York Mercantile Exchange.
Brent North Sea crude for June delivery, the global benchmark, fell 45 cents to settle at $64.83 a barrel in London trade.
Carl Larry of Frost & Sullivan said there was little change in fundamentals to move the market one way or the other, and investors were taking a few profits from last week's gains.
"WTI continues to draw at least some buying interest despite record, and likely still rising, US crude oil inventories," said Tim Evans of Citi Futures.
On the supply side, US crude production has dipped slightly in three of the past four weeks, but still hovers around nine million barrels a day.
Downward pressure on prices has been limited by geopolitical risk concerns, especially the crisis in Yemen. A Saudi Arabia-led coalition launched new air strikes Monday on Iran-backed Huthi Shiite rebels.
Yemen borders the Bab el-Mandeb Strait, the key strategic entry point into the Red Sea through which some 4.7 million barrels of oil pass each day on ships headed to or from the Suez Canal.
But Barclays analysts warned that prices would find resistance to going higher.
"Sustaining the recent oil price rally requires firmer demand and a tangible supply response," they said in a research note. "The cart is moving ahead of the horse, and we take a cautious view on further price appreciation over the near term."
"There are several singular sources of demand strength but little evidence to suggest that a broad pickup in consumption is occurring."