WTI slide to $53.50, weighed down by a jump in US rig count

Having logged fourth consecutive weekly gain, WTI crude oil began the new week on a weaker note and edged lower on Monday. 

Currently trading around $53.60 level, with a cut of around 0.75%, the black gold witnessed some selling pressure after Friday's Baker Hughes report showed a further rise in the number of rigs drilling oil in the US. In fact, the US rig counts rising by four to 529 for the week ended Dec. 30 and raised concerns that a coordinated effort by OPEC and non-OPEC countries, to curtail oversupply, might be negated by an increase in production by US shale producers and countries outside the pact. 

Moreover, a stronger US Dollar, in wake of Friday's upbeat NFP repot, was further seen weighing on dollar-denominated commodities, including oil. 

Further downside, however, has been limited amid growing optimism over adherence to the pledged output cut, with Angola announcing a cut in production by 78,000 barrels a day to meet the OPEC output cut agreement quota. 

Investors would continue to keep a close watch on any fresh news / comments from global oil producers for further evidence that they will stick to the pledge to curb output in order to support / lift prices.