Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Crude settles higher as US rig count falls for first time since January

Published 06/30/2017, 02:22 PM
Updated 06/30/2017, 02:43 PM
Crude futures suffered thier worst first-half performance since 1998
LCO
-
CL
-

Investing.com – Crude futures extended gains for the seventh day in a row as data showed the number of active U.S. drilling rigs declined for the first time since January suggesting that U.S. production could be tightening, easing oversupply jitters.

On the New York Mercantile Exchange crude futures for August delivery added $1.11 to settle at $46.04 a barrel, while on London's Intercontinental Exchange, Brent gained $0.53 flat at $48.60 a barrel.

Oilfield services firm Barker Hughes reported its weekly U.S. rig count fell by 2 to a total of 756, ending a trend that has seen the number of U.S. rigs increase since for six-straight months.

The weekly rig count is an important barometer for the drilling industry and serves as a proxy for oil production and oil services demand.

The surprise dip in the number of active U.S. drilling rigs comes amid a rebound oil prices, as investors seemed to take advantage of the recent slump in oil prices into bear market territory.

Some commentators remained adamant, however, that the recent bounce in oil prices would be temporary, as Opec and its allies’ continue to struggle to tackle the underlying problem of oversupply in the industry, which has pressured prices for nearly three years.

"There's a real problem out there in the crude oil market. You're going to get a rally and the market is rallying today. It's been rallying for the past 4 or 5 days. It is nothing but a dead cat bounce," the editor and publisher of The Gartman Letter said in an interview with cnbc.

In May, Opec and non-Opec members agreed to extend production cuts for a period of nine months until March, but stuck to production cuts of 1.8 million bpd agreed in November last year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.