Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Oil prices dip on rising US rig count, but overall sentiment remains bullish

Published 2018-04-22, 08:33 p/m
Updated 2018-04-22, 08:40 p/m
© Reuters. Oil prices dip on rising US rig count, but overall sentiment remains bullish

© Reuters. Oil prices dip on rising US rig count, but overall sentiment remains bullish

* U.S. rig count rises to 820, highest since March, 2015

* But strong demand, OPEC cuts still support prices overall

By Henning Gloystein

SINGAPORE, April 23 (Reuters) - Oil prices dipped early on Monday as a rising U.S. rig count pointed to further increases in the country's output, underlining one of only a few factors holding back crude markets in an otherwise bullish environment.

Brent crude oil futures LCOc1 were at $73.87 per barrel at 0031 GMT, down 19 cents, or 0.3 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 23 cents, or 0.30 percent, at $68.17 a barrel.

U.S. drillers added five oil rigs drilling for new production in the week ending April 20, bringing the total count to 820, the highest since March, 2015, according to General Electric's Baker Hughes energy services firm. rising rig count points to further increases in U.S. crude production C-OUT-T-EIA , which has already climbed by a quarter since mid-2016 to a record 10.54 million barrels per day (bpd).

Only Russia currently produces more, at almost 11 million bpd.

Despite the dips in crude oil prices on Monday, overall markets remain well supported by strong demand, especially in Asia, and Brent prices are up by 20 percent from their 2018 lows in February. further support have been supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) introduced in 2017 with the aim of propping up prices, as well as by the potential of renewed U.S. sanctions against Tehran.

The United States has until May 12 to decide whether it will leave the Iran nuclear deal, which would further tighten global supplies.

"Stay long oil," U.S. bank J.P. Morgan said in a note to clients.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC: U.S. oil rig count

https://reut.rs/2JdlIeM GRAPHIC: Asia crude oil demand

https://reut.rs/2K2V89x

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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.