Oil flat in subdued trade, focus remains on supply surplus

By Libby George LONDON (Reuters) - Oil prices were flat on Monday but remained on an unstable footing as increases in U.S. drilling activity undercut an OPEC-led push to tighten supply. Trading was subdued due to public holidays in China, the United States and Britain, but the market remains unsettled because of uncertainty over whether the impact of OPEC's latest action to curb oversupply would be enough to support prices. U.S. West Texas Intermediate (WTI) crude futures were 4 cents higher at $49.84 per barrel.