NEW YORK, April 6 (UPI) -- A Saudi decision to raise market prices for Asia pushed oil upward in Monday trading, erasing concerns from last week's poor U.S. labor showings.
Brent crude oil prices were up more than 2.5 percent in early Monday trading to around $56.40 per barrel. Brent see-sawed last week as the market weighed the prospects of more available Iranian crude oil as a result of nuclear negotiations in Switzerland.
Brent rallied after the Saudi Arabian Oil Co., known also as Saudi Aramco, said it was raising its price for Asian buyers in a sign of improving global demand.
Prices for Asia were cut after the Sunni-led kingdom hinted that it needed to protect its market share against the glut of oil from shale reserves in the United States. That drove oil prices lower and put a strain on corporate spending in exploration and production.
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Oil services company Baker Hughes last week reported the number of rigs actively exploring for or producing oil and natural gas in the United States was 1,028 for the week ending April 2, down 43 percent year-on-year. Internationally, the rig count was down about 4 percent from last year.
Lower spending has forced several energy companies to eliminate staff in an effort to save money in the depressed oil market. The U.S. Labor Department said Friday hiring was sluggish in March, with employers adding only 126,000 jobs.
The national unemployment rate remained at 5.5 percent for March. For mining and the oil and gas sector, the rate was 8 percent.
U.S. markets were closed for Good Friday. The price for West Texas Intermediate, the U.S. benchmark, gained 2.4 percent in early Monday trading to sell for $50.32 per barrel.
