Oil prices climb after falling U.S. rig count
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E-mail Xinhua, May 16, 2020
NEW YORK, May 15 (Xinhua) -- Oil prices extended gains on Friday after data showed another slip in U.S. oil rig count.
The West Texas Intermediate for June delivery increased 1.87 U.S. dollars to settle at 29.43 dollars a barrel on the New York Mercantile Exchange, while Brent crude for July delivery rose 1.37 dollars to close at 32.50 dollars a barrel on the London ICE Futures Exchange.
The moves followed a significant rise in the previous session with the U.S. oil benchmark climbing nearly 9 percent.
The prices were supported amid signs of supply tightening.
The number of active U.S. rigs drilling for oil dropped by 34 to 258 this week, oilfield services company Baker Hughes reported on Friday. The oil rig count has now fallen for nine weeks in a row.
"Global oil supply is set to fall by a spectacular 12 mb/d (million barrels a day) in May to a nine-year low of 88 mb/d, as the OPEC+ agreement takes effect and production declines elsewhere," the International Energy Agency said in its closely-watched monthly report on Thursday, adding "a resurgence of COVID-19 is a major risk factor for demand."
The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, agreed to cut output by 9.7 million barrels per day for May and June, aiming to tackle a global supply glut on the back of the COVID-19 crisis. Enditem
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