Futures in New York fell as much as 0.9 percent after climbing 2.1 percent over the previous three sessions. The number of rigs targeting oil rose by 10 to 862, data from oilfield-services provider Baker Hughes showed, as this year’s rising crude prices buoyed optimism. Venezuela abandoned its decision to sever diplomatic ties with the U.S., defusing tensions after Washington’s decision to recognize National Assembly leader Juan Guaido as the country’s head of state.
Oil has advanced 18 percent in 2019 as the Organization of Petroleum Exporting Countries and its allies began cutting production to ease concerns over a supply glut, although record U.S. production, rising stockpiles and the trade war are capping gains. A deepening crisis in Venezuela had a small upward impact on prices last week, and the prospect of U.S. sanctions on the nation is also threatening to make it more challenging for OPEC to manage markets.
West Texas Intermediate crude for March delivery fell 36 cents to $53.33 a barrel on the New York Mercantile Exchange as of 1 p.m. in Tokyo. It declined as much as 49 cents earlier. The contract rose 56 cents to $53.69 on Friday.
Brent for March settlement dropped 25 cents to $61.39 a barrel on the London-based ICE Futures Europe exchange. The contract added 55 cents to settle at $61.64 on Friday. The global benchmark crude traded at a $8.03 premium to WTI.
Source : Bloomberg