Oil slipped toward $65 a barrel on Monday as signs that U.S. shale oil production was recovering after a recent price rally renewed concerns of a growing global supply glut.
China’s latest move to bolster its economy offset some of the losses as it raised hopes that the world’s top energy consumer would help absorb supplies.
Brent crude for June was down 30 cents at $65.09 a barrel by 1225 GMT (8.25 a.m. EDT) after dropping 1.6 percent last week. June U.S. light crude was up 15 cents to $59.54 a barrel after rising for eight straight weeks, the longest winning stretch since early 2013.
Analysts talk of a growing disconnect between the futures market, which has gained more than 40 percent since its January low, and a growing physical supply glut.