US Crude Adds to Best Weekly Gain Since June As Oil Rig Count Dips
Crude oil futures are rising to finish the trading week as the oil rig count fell for the second straight week. US crude prices are on track for their best weekly performance since June, driven primarily on supply disruptions in the Gulf Coast and potential output reductions among the members of the Organization of the Petroleum Exporting Countries (OPEC). Can oil prices sustain the momentum and remain trading above $40 a barrel?
October West Texas Intermediate (WTI) crude futures rose $0.12, or 0.29%, to $41.09 per barrel at 18:41 GMT on Friday on the New York Mercantile Exchange. US crude prices are poised for a weekly spike of 10%, paring their year-to-date losses to below 33%.
Brent, the international benchmark for oil prices, is lower at the end of the trading week. November Brent crude futures slipped $0.15, or 0.35%, to $43.15 per barrel on London’s ICE Futures exchange. Brent will also post a weekly jump of about 8%. So far this year, Brent is down 35%.
According to Baker Hughes, the oil rig count came in at 179 for the week ending September 18, down from 180 in the previous week. This is the second consecutive week of the number of crude oil rigs falling. This is also the first time in more than a month that the oil rig count was below 180. The total rig count, however, edged up from 254 to 255.
He made the comments during a Joint Ministerial Monitoring Committee meeting Thursday, which officially extended the period for countries that failed to limit output correctly. Last month, OPEC relaxed the output freeze from 9.7 million barrels per day (bpd) to 7.7 million bpd.
Despite the contentious meeting, analysts believe that the cartel will refrain from curtailing production cuts to 5.8 million bpd, a move that would add another two million bpd to the global crude market.
In other energy commodities, October natural gas futures picked up $0.022, or 1.08%, to $2.064 per million British thermal units (btu). October gasoline futures edged up $0.0092, or 0.75%, to $1.2336 per gallon. October heating oil futures dipped $0.0032, or 0.28%, to $1.1567 a gallon.