Oil prices rise on lower U.S. drilling activity

0
768

SINGAPORE (Reuters) – Oil prices rose on Monday, lifted by a drop in U.S. drilling activity as well as by expectations that the United States could re-introduce sanctions against Iran.
U.S. WTI crude futures CLc1 were at $65.18 a barrel at 0025 GMT, up 24 cents, or 0.4 percent, from their previous settlement.

Brent crude futures LCOc1 were fetching $69.67 per barrel, up 33 cents, or 0.5 percent.

Stephen Innes, head of trading for Asia/Pacific at futures brokerage OANDA in Singapore, said oil markets remained nervous about “whether or not the U.S. administration will scrap or maintain the fragile nuclear deal with Iran.”

Innes said prices were also supported by a weekly report that there was a drop in activity of drilling for new oil production in the United States.

U.S. drillers cut seven oil rigs in the week to March 29, bringing the total count down to 797 RIG-OL-USA-BHI, General Electric Co’s (GE.N) Baker Hughes energy services firm said in its closely followed report last Thursday. It was the first time in three weeks that the rig-count fell.

Baker Hughes published its North American rig count report on Thursday, one day earlier than usual, due to the Good Friday holiday on March 30.
General Electric Co13.48
GE.NNew York Stock Exchange
-0.20(-1.46%)
GE.N

GE.N

Oil prices have generally been supported by supply restraint led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia, which started in 2017 in order to rein in oversupply and prop up prices.

Liquidity on Monday will be low as many countries, especially in Europe, will still be on Easter holiday.

SHARE
Previous articleBanks credit to property market hits N3.12 trillion as Experts say Nigeria’s housing deficit is over 17 million
Next articleSupermodel Naomi Campbell urges Vogue to launch African edition
Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.