Oil fell below $53 a barrel as America’s rig count rose for the first time this year, signaling further increases in the nation’s burgeoning crude production.
Futures in New York dropped as much as 2.2 percent after climbing 2.1 percent over the previous three sessions. The number of rigs targeting oil rose by 10 to 862 last week, Baker Hughes data showed, as rising crude prices buoyed optimism. In OPEC member Venezuela, President Nicolas Maduro abandoned his decision to sever diplomatic ties with the U.S., as he and National Assembly leader Juan Guaido both sought the backing of the country’s armed forces.
Oil has advanced 16 percent this year as the Organization of Petroleum Exporting Countries and its allies start cutting production to ease concerns over a supply glut. Nevertheless, record American output, rising stockpiles and the continuing U.S.-China trade war have capped gains. Talks between the world’s two biggest economies later this week may provide the catalyst for crude to break through its recent narrow trading range.
West Texas Intermediate crude for March delivery fell as much as $1.19 on the New York Mercantile Exchange, and was down 99 cents at $52.70 a barrel as of 10:48 a.m. London time. The contract rose 56 cents to $53.69 on Friday.
Brent for March settlement dropped $1.06 to $60.58 a barrel on the London-based ICE Futures Europe exchange, and traded at a $7.87 premium to WTI. The global benchmark crude added 55 cents to settle at $61.64 on Friday.
Source : Bloomberg