Crude oil up on concerns over global oversupply ‎

The crude prices rose sharply on Monday, with data showed that output rigs ‎‎in the United States declined for the third consecutive week. ‎

The number of rigs drilling for oil in the U.S. fell to 789, the lowest since ‎‎January 2014. The number of platforms has decreased in 13 of the last 16 ‎‎weeks after hitting an all-time high of 1,722 back in December.‎

Last week, Nymex oil shed 1.22 per cent, or $1.13 to trade eventually at ‎‎‎$54.81 after reports showed that the increase pace in the U.S. production ‎‎accelerated in January, endorsing fears from a glut in supplies.‎

Crude oil stockpiles in the US fell last week to 513.6 million barrels, ticking ‎‎near a 3-year low and signaling that commodity prices may soon pick up as ‎‎oversupply eases.‎

Elsewhere, Brent oil for May delivery lost 23 cents, or 0.57 per cent, to trade ‎‎at $58.17 a barrel, according to the ICE Futures Exchange in London. Brent ‎‎prices lost more than three per cent in February with investors betting that a ‎‎bottom has not been reached yet.

However, prices are still up nearly 24 per ‎‎cent off 2014 lows, when futures tumbled to below $30 a barrel.‎

Oil prices in general have strengthened sharply amid calls by the OPEC ‎‎cartel to cut production, though recent reports show the U.S. shale oil ‎‎pumped at the fastest pace in three decades, creating a glut in global ‎‎supplies.‎