Oil Jumps 3% As Dollar Falls, US Rig Count Drops
NEW YORK, Aug 18 (Reuters) - Oil prices rose sharply on Friday, as the dollar fell and U.S. drillers cut rigs, feeding a rally that boosted global benchmark Brent crude to a weekly gain while U.S. crude was virtually flat on the week.
U.S. energy firms cut oil rigs for a second week in three, the Baker Hughes energy services firm reported, with drillers cutting spending plans in reaction to declining crude prices.
Drillers cut five oil rigs in the week to Aug. 18, bringing the total count down to 763, Baker Hughes said. <RIG-OL-USA-BHI>
Earlier in the week, government data had suggested that crude output in the United States was still rising.
WTI crude futures for September delivery rose $1.42 to $48.51 a barrel, a 3 percent gain. Brent crude futures for October delivery rose $1.69 to $52.72 a barrel, a 3.3 percent gain.
Brent and U.S. crude prices had both been headed for weekly declines of more than 2 percent, but Friday's sharp rally left Brent with a 1.5 percent weekly gain while U.S. crude finished the week virtually flat, down just 0.3 percent.
Tariq Zahir, founding member at Tyche Capital Advisors, warned that despite Friday's rise, fundamentals for oil remain bearish as U.S. driving season nears an end.
"The main question is whether we will continue to see the kind of inventory draws that may show the supply-demand balance is tightening over the next few weeks," said Gene McGillian, director of market research at Tradition Energy.
Nigeria's crude oil exports are expected to slip to 1.72 million barrels per day (bpd) in October, loading programs showed on Friday.
Signs of supply tightness have started appearing in the United States, the world's biggest oil consumer.
Despite a 13 percent jump in production <C-OUT-T-EIA> since mid-2016 to 9.5 million bpd, the country's commercial crude inventories <C-STK-T-EIA> have fallen 13 percent from their March records to below 2016 levels.
(Additional reporting by Henning Gloystein and Karolin Schaps; Editing by David Evans and David Gregorio)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension