U.S. oil held gains above $58 a barrel after American explorers reduced drilling activity to the lowest level in more than a year, even as President Donald Trump said Washington isn’t ready to make a trade deal with China.
Futures in New York edged lower after closing 1.2% higher on Friday, amid the intensifying trade dispute between the world’s two largest economies. Trump said he isn’t pursuing regime change in Iran, in spite of U.S. sanctions on the OPEC member’s oil exports. Working U.S. rigs fell to its lowest level since March 2018, according to Baker Hughes data released Friday.
West Texas Intermediate crude for July delivery fell 32 cents, or 0.6%, to $58.31 a barrel on the New York Mercantile Exchange at 1:49 p.m. in Dubai. The contract closed 72 cents higher on Friday, paring its loss for the week to 6.6%.
Brent for July settlement was almost unchanged at $68.72 a barrel on London’s ICE Europe Futures after settling 1.4% higher on Friday. The global benchmark crude is trading at a $10.39 premium to WTI.
Source : Bloomberg