Oil Rallies On US Jobs Data, Bullish EIA Monthly Report

"Naimi saying again his comment about being ready to act if other producers cooperate added to two days of bullishness," said Dominick Chirichella, senior partner at Energy Management Institute in New York.

Prices also got a lift from news that Minneapolis Fed President Narayana Kocherlakota made a case for waiting until the second half of 2016 to raise interest rates, and to then raise them gradually to just 2 percent by the end of 2017.

Crude futures recovered after slipping on signs of growing oversupply as Iranian officials visited China to seek more oil sales following the framework nuclear deal that could lead to lifting sanctions on Tehran.

Prices also felt pressure from a Goldman Sachs report saying prices needed to remain low for months to slow U.S. oil output growth.

The American Petroleum Institute's (API) weekly report on U.S. oil inventories is due Tuesday at 4:30 p.m. EDT (2030 GMT), with the EIA's report following on Wednesday at 10:30 a.m. EDT.

U.S. commercial stocks were seen extending their record build for a 13th consecutive week, a Reuters survey on Monday showed.

On Monday, industry intelligence provider Genscape said its data showed stocks at the Cushing, Oklahoma, oil hub rose by the relatively small amount of 169,000 barrels last week.


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