Asian demand signals give oil prices stability

Signs of strong Asian demand provided a modest lift to crude oil prices early in the trading day Monday, though major indices remain relatively stable for May.

Brent crude oil prices started Monday at around $66.34 per barrel, relatively unchanged from the start of Friday trading. Brent crude oil prices started May at around $66.16 per barrel.

Brent has been relatively stable amid signs of overall improvement in the global economy. Though the United States continues to stall, the European economy has shown slow but steady improvement in terms of growth in gross domestic product.

China, meanwhile, continued to show signs of increasing oil demand. A subsidiary of China National Petroleum Corp. signed a $330 million deal with Abu Dhabi Co. for Onshore Oil Operations to develop an Emirati oil field and boost ADCO's daily production from 1.4 million barrels to 1.8 million barrels by 2017.

While slowing, the Organization of Petroleum Exporting Countries said in its latest monthly market report the Chinese economy may grow in the second and third quarters in part in response to Beijing's oversight and the benefits of lower oil prices.

U.S. crude oil prices were supported late last week by data from oil field services company Baker Hughes showing the pace of deceleration in the exploration and production sector was slowing down. The number of rigs actively engaged in exploration and production in North Dakota, the No. 2 oil producer in the United States, was unchanged.

West Texas Intermediate, the U.S. benchmark, was up about 1.3 percent from the opening bell Friday to trade at $60.08 per barrel in early Monday trading. WTI started May at $59.19.