Crude oil futures were largely stable during mid-morning trade in Asia Monday as markets digested a mild uptick reported in US oil rig data, amid prevailing supply side uncertainties which continue to inject upside pressure on prices.
At 10:30 am Singapore time (0230 GMT), the December ICE Brent crude futures ticked up 7 cents/b (0.09%) from Friday's settle at $79.85/b, while the NYMEX November light sweet crude contract was up 15 cents/b (0.22%) at $69.43/b.
On Friday, Baker Hughes reported that US oil rig count was up by 4 to 873 for the week ended October 19.
For the same period, S&P Global Platts data expected domestic rigs drilling for oil to have fallen by 13 to 920.
While the data was mildly bearish for prices, ongoing supply concerns with respect to the Iranian sanctions, and the rift between US and Saudi Arabia kept prices supported, analysts said.
The market is re-evaluating global supply risks after rising tensions between the US and Saudi Arabia over journalist Jamal Khashoggi's disappearance have brought assurances of stepped-up Saudi oil production under scrutiny.
"With US President Trump warning of consequences if it's found that Khashoggi was murdered, investors are becoming increasingly concerned that the oil market will be embroiled in the issue," ANZ analysts said in a note Monday.
On Thursday, Trump said he believed Khashoggi was dead and, while stopping short of accusing the Saudis of any involvement, reiterated his position that the Kingdom would face "severe consequences" if it was proven to have had a hand in the journalist's murder. Saudi Arabia has denied any involvement in Khashoggi's disappearance.
"The answer [to Khashoggi's disappearance] can have a major impact on your wallet, as well as international relations and the future of oil prices," The PRICE Futures Group's analyst Phil Flynn said in a note.
Meanwhile, investors would be looking out for fresh cues from last week's US inventory data reports, the first look of which is due for release later Monday.
"We feel that the market is taking the supply risks too lightly at present and expect oil prices to rise in the coming weeks, " Commerzbank analysts said in a note.
As of 0230 GMT, the US Dollar Index was up 0.05% at 95.44.
