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Oil opens slightly up but stays near August lows after Paris attacks

SINGAPORE – Crude oil futures opened slightly stronger in early Asian trading on Monday following the deadly attacks on Paris, but prices remain near August lows and oil and other commodities are expected to continue under broad pressure in nervous trading.

Front-month U.S. crude futures <CLc1> were trading at $40.88 a barrel at 2313 GMT, up 14 cents from their last close.

Internationally traded Brent <LCOc1> was at $44.58 a barrel, up 11 cents.

Both crude benchmarks saw high levels of activity in early trading as markets looked nervously for direction following the deadly attacks in Paris on Friday.

“Copper and crude oil prices are likely to remain under pressure short-term,” ANZ bank said in a morning note on Monday.

The bank said that oil prices would also be under pressure from fundamentals.

“Surprisingly, U.S. drillers are putting rigs back to work in the oil fields after more than two months. Baker Hughes reported the U.S. oil rig count gained by 2 to 574,” ANZ bank said on Monday, but added that “we believe the low oil price environment will lead to a decline in drilling activity in the coming weeks.”

In related news, T. Boone Pickens on fighting terrorism: Natural gas is a key weapon.

(Editing by Ed Davies)

This article was written by Henning Gloystein from Reuters and was legally licensed through the NewsCred publisher network.