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Brent crude rose by 23 cents, or 0.3%, to
$70.34 a barrel by 1055 GMT. U.S. West Texas Intermediate (WTI)
was up 52 cents, or 0.9%, at $59.15.
U.S. crude futures were trading for the first time since Friday
after a long holiday weekend.
Investors, however, remain concerned that the trade war between
the United States and China could hit the global economy and
dent fuel consumption.
Brent futures last week registered a decline of 4.5% and WTI was
slid by 6.4% for its biggest weekly loss since December.
"Oil prices lack direction because the oil market currently
finds itself caught between supply risks and concerns about
demand," Commerzbank said in a note.
"A whole host of poor economic data from the major economic
areas of the U.S., China and Europe, plus the entrenched
situation in the trade talks, are not good news for the demand
outlook."
On the flip-side, crude has gained support from supply cuts by
the Organization of the Petroleum Exporting Countries (OPEC) and
its allies since the start of the year, with political tensions
in the Middle East another bullish influence.
No political solution appears forthcoming to end U.S. sanctions
that have largely taken Iranian and Venezuelan crude out of
global markets.
"Brent is likely to resume its upward trend in line with its
fundamentals, which are tight," said Harry Tchilinguirian,
global oil strategist at BNP Paribas in London.
"This tightness is reflected in the generic front-month Brent
futures time-spread. Backwardation is very steep at $1.33 a
barrel – the last time we sustained such deep backwardation was
in 2013, when spot Brent was trading above $100 a barrel."
Backwardation, a market structure where the spot price is higher
than the price of crude in later months, tends to indicate tight
supplies and a drawdown in inventories.
OPEC and allies including Russia are due to meet over June 25-26
to discuss output policy.
Khaled al-Fadhel, oil minister of OPEC member Kuwait, said he
expects the market to approach balance in 2019 as global
inventories fall and demand remains strong.
"I believe the market is expected to be balanced during the
second half of 2019, more towards the end of the year," he told
Reuters, adding that the impact of U.S. sanctions on Iran "has
yet to be felt".
(Additional reporting by Henning Gloystein; Editing by Edmund
Blair and David Goodman)
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