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NYMEX crude gains in Asia with U.S. rig count data eyed on supply

Published 11/10/2016, 06:31 PM
Updated 11/10/2016, 06:32 PM
© Reuters.  NYMEX crude up in Asia
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Investing.com - Oil prices rebounded in Asia on Friday from overnight declines on oversupply concerns as U.S. rig count data comes into focus.

Last week, Baker Hughes said the number of rigs drilling for oil in the U.S. rose by 9 to 450, resuming its rise following its first dip in roughly four months in the previous week.

On the New York Mercantile Exchange U.S. crude for December rose 0.32% to $44.41 a barrel.

Overnight, oil prices turned lower on Thursday after the International Energy Agency warned that the market risks running another surplus in 2017 without an output cut from OPEC.

OPEC reached an agreement to cap output to a range of 32.5 million to 33.0 million barrels per day in talks held in Algeria in late September. However, the 14-member oil group said it won’t finalize details on individual output quotas until its next official meeting in Vienna on November 30.

The possibility that producers could walk away empty-handed from the November meeting looms large after Iraq, Iran, Nigeria and Libya all signaled they might not take part in the proposed production cut deal. Russia’s unclear stance is also fueling uncertainty.

Brent crude on the Intercontinental Exchange in London for December delivery was last quoted at $45.68 a barrel.

In its monthly report, the IEA said OPEC crude output hit record high of 33.83 million barrels a day in October and warned that 2017 could be another year of relentless global supply growth.

Prices were also held in check after data showing a 2.4-million-barrel increase in U.S. crude inventories last week, adding to concerns about oversupply.

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