Saudi Arabia hikes June crude oil prices for most regions
US oil rig count falls by 7 to 499, Baker Hughes reports
China39;s April business sentiment rises, Caixin PMI shows

SINGAPORE, May 6 Reuters Oil futures climbed on Monday after Saudi Arabia hiked June crude prices for most regions and as the prospect of a Gaza ceasefire deal appeared slim, renewing fears the IsraelHamas conflict could still widen in the key oil producing region.

Brent crude futures gained 34 cents, or 0.4, to 83.30 a barrel at 0518 GMT, while U.S. West Texas Intermediate crude futures were at 78.45 a barrel, up 34 cents, or 0.4.

Saudi Arabia raised the official selling prices OSPs for its crude sold to Asia, Northwest Europe and the Mediterranean in June, signalling expectations of strong demand this summer.

After falling a little more than 7.3 last week due to easing geopolitical tensions, ICE Brent has started the new trading week on a stronger footing, opening higher, ING39;s head of commodities research Warren Patterson said in a note.

This comes after Saudi Arabia raised June OSPs for most regions amid a tightening of supplies this quarter, he added.

In China, the world39;s largest crude importer, services activity remained in expansionary territory for the 16th straight month, while growth in new orders accelerated and business sentiment rose solidly, boosting hopes of a sustained economic recovery.

Last week, both futures contracts posted their steepest weekly loss in three…