Oil Prices Edge Up as North America Cuts Crude Rigs

December 17, 2018

Investing.com – Oil prices edged up on Monday morning in Asia after the number of crude drilling rigs in the U.S. and Canada fell last week, easing some concerns about global oversupply.

Crude Oil WTI Futures for February delivery edged up 0.23% to $51.59 a barrel at 11:07 PM ET (04:07 GMT) on the New York Mercantile Exchange, while Brent Oil Futures for February were trading at $60.33 per barrel on London’s Intercontinental Exchange.

North America reduced 11 oil rigs in total as of Dec. 14 compared to a week ago, with the U.S. cutting four rigs and Canada losing seven. The total count of the U.S. drillers dropped to the lowest in two months, while that of Canada fell to a six-month low, according to energy services firm Baker Hughes last Friday and data research platform YCharts.

“Oil is finding support as the drop in Baker Hughes rig counts points to a near-term slowdown in U.S. production,” Stephen Innes, head of trading for APAC at futures brokerage Oanda, told Reuters.

“This, when combined with [expectations] Saudi Arabia…is to cut exports to the U.S. to draw down inventory builds (there) should provide a short-term base despite global slowdown fears, which continue to resonate.”