Oil prices rose on Monday after falling 5 percent last week on soaring U.S. stockpiles and signs OPEC will keep output near 25-year highs. "This rise (in crude) is technical, with a bit of short-covering," said Marshall Steeves of Refco Group. "The market outlook is still bearish near-term." U.S. light sweet crude for July delivery settled 51 cents higher, up more than 1 percent, at $49.16 a barrel. London's Brent crude settled 34 cents higher at $48.37 a barrel. A two-week slide has wiped 7 percent off prices and taken oil nearly $10 below its early April record high, as the dollar's rally to a seven-month peak against the euro convinced some hedge funds to move money back into foreign exchange markets. Speculative traders on the New York Mercantile Exchange (NYMEX) have switched to a net short crude oil position for the first time in four months, U.S. data showed on Friday. Since early February, U.S. crude oil supplies have climbed more than 13 percent to their highest level in six years, pumped up by near-record OPEC production meant to create a bigger cushion for an expected jump in winter demand. U.S. crude oil stocks rose 1.3 million barrels last week as a continued rise in imports added to a six-year high in supply, analysts forecasted in a survey on Monday. A fresh government weekly petroleum supply report will be issued on Wednesday morning.
