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 drop on increased U.S. rig drilling

Published 2017-12-10, 07:28 p/m
Updated 2017-12-10, 07:30 p/m
© Reuters.  Oil prices drop on increased U.S. rig drilling

© Reuters. Oil prices drop on increased U.S. rig drilling

By Henning Gloystein

SINGAPORE, Dec 11 (Reuters) - Oil prices fell on Monday, pulled down as the latest rise in the U.S. rig count pointed to a further increase in American production, potentially undermining efforts led by OPEC to tighten markets.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $57.10 a barrel at 0019 GMT, down 25 cents, or 0.4 percent, from their last settlement.

Brent crude futures LCOc1 , the international benchmark for oil prices, were down 32 cents, or 0.5 percent, at $63.08 a barrel.

"The largest concern for investors currently remains the rise in the U.S. rig count, which could potentially jeopardize the OPEC and Russian agreement when they meet for a review in June, 2018," said Shane Chanel, equities and derivatives adviser at ASR Wealth Advisers.

The amount of rigs drilling for new oil production in the United States rose by two in the week to Dec.8, to 751, the highest level since September, General Electric (NYSE:GE) Co's GE.N Baker Hughes energy services firm said on Friday. RIG-OL-USA-BHI

A higher rig count points to a further rise in U.S. crude production C-OUT-T-EIA , which has already increased by more than 15 percent since mid-2016 to 9.71 million barrels per day (bpd).

That's the highest level since the early 1970s, and close to levels from top producers Russia and Saudi Arabia.

Rising U.S. output threatens to undermine efforts led by the Organization of the Petroleum Exporting Countries (OPEC) and a group of non-OPEC producers, most importantly Russia, to support prices by withholding supplies.

OPEC and its allies started withholding supplies last January and currently plan to continue doing so throughout 2018.

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.