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UPDATE 7-Oil seesaws after early gains on Wall Street; rig count eyed

Published 2015-09-25, 12:41 p/m
© Reuters.  UPDATE 7-Oil seesaws after early gains on Wall Street; rig count eyed
BKR
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LCO
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* Brent flat, U.S. crude up 1 pct, trade choppy
* Both Brent, U.S. crude headed for weekly gains
* Wall Street jumps after Yellen remarks, revised Q2 GDP
* Coming Up: U.S. rig count data at 1:00 p.m. EDT (1700 GMT)

(New throughout, updates prices and market activity, adds
weekly price moves, background and analyst comment)
By Barani Krishnan
NEW YORK, Sept 25 (Reuters) - Global oil markets seesawed
around break-even on Friday, jumping 2 percent in early trade on
lift from a Wall Street rally and then retracing those gains as
crude traders waited for direction from weekly U.S. rig count
data.
Oil prices were still headed for weekly gains as optimism in
recent days about lower stockpiles at the Cushing, Oklahoma
delivery point for U.S. crude outweighed worries about builds in
U.S. gasoline inventories. USOICC=ECI ID:nL1N11U0UM
USOILG=ECI
Brent LCOc1 , the global benchmark for oil, was down 2
cents at $48.15 a barrel by 12:25 p.m. EDT (1625 GMT). It had
risen almost $1 at the session high, then turned negative.
U.S. crude CLc1 was up 45 cents, or 1 percent, at $45.36,
in choppy trade.
On the week, both Brent and U.S. crude were up about 1.5
percent.
The latest weekly reading on the U.S. oil rig count is due
from industry firm Baker Hughes (NYSE:BHI) at 1 p.m. EDT (1700 GMT). Oil
prices had been supported by declines in U.S. rigs over the past
three weeks, suggesting production could decline. RIG/U
"More support is expected from today's oil drilling rig
counts," Jim Ritterbusch of energy markets consultancy
Ritterbusch and Associates in Chicago said, adding that prices
could go higher but would still be pressured in coming weeks by
a mixed outlook for oil.
Oil prices have swung wildly over the past month, moving as
much as 8 percent in either direction, as expectations for lower
U.S. oil production were offset by signs that the biggest
producers in OPEC were still pumping at record levels.
A weakening economy in China, which had been the engine of
commodities demand for more than a decade, also offset bullish
sentiment emanating from steady U.S. growth and rallying stock
prices on Wall Street. Adding to trader caution are concerns
that U.S. interest rates are set to rise by the year-end.
Early in the session, oil followed the rally on U.S. equity
markets after upward revisions to second-quarter economic growth
and after remarks by Federal Reserve Chair Janet Yellen that
eased concerns about slowing global growth. .N
The dollar also rose, offsetting some of the early strength
in oil, after Yellen said she expects the Fed to begin raising
interest rates later this year if conditions warrant.
ID:nL1N11U2VK

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