Oil futures rebounded some on Monday, after falling 7% last week, but market players doubt bargain buying will be enough to hoist U.S. benchmark prices away from $50 a barrel near-term.
Crude came under fresh pressure last week as U.S. production showed further growth and gasoline supplies surprisingly increased.
Meanwhile, more investors are now second guessing whether current production cuts by Organization of the Petroleum Exporting Countries and Russia will ultimately be enough to sufficiently cut into global supplies amid the new gusher of U.S. oil. Data on Friday showed the number of active oil rigs in the U.S. has risen for 14th straight weeks to hit their highest level in more than a year.
Doubts are so pronounced that even with typical bullish factors like a weaker greenback and simmering geopolitical tensions, oil prices are only modestly higher on Monday, said Michael McCarthy of CMC Markets.