En Español



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

Oil prices fall Monday after U.S. drillers add rigs

By Aaron Sheldrick

TOKYO
Petroleumworld 12 04 2017

Oil fell on Monday after U.S. shale drillers added more rigs last week, but prices still held close to their highest since mid-2015, supported by an extension of output cuts agreed last week by OPEC and other producers.

Drillers in the United States added two oil rigs in the week to Dec. 1, bringing the total count up to 749, highest since September, energy services firm Baker Hughes said in its closely followed report late on Friday. RIG-OL-USA-BHI

U.S. West Texas Intermediate CLc1 was down 46 cents, or 0.8 percent, at $57.90 a barrel at 0431 GMT. Brent futures LCOc1 were down 39 cents, or 0.6 percent, at $63.34 a barrel.

The U.S. rig count, an early indicator of future output, gained sharply from 477 rigs active a year ago after energy companies boosted spending plans for 2017. [RIG/U]

Drillers over 2017 were encouraged to increase activity as crude prices started recovering from a multi-year price slump around the same time that the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers, including Russia, agreed to production cuts a year ago.

Last week, the producers agreed to extend those cuts of 1.8 million barrels per day (bpd) until the end of next year.

“The extent of U.S. production growth and the strength of global oil demand in 2018 remain the main uncertainties,” BMI Research said in a note.

“OPEC (or rather Saudi Arabia) will increasingly work to manage the market,” BMI said in the note.

The latest agreement allows for producers to exit the deal early if the market overheats. Russian officials had expressed concern that extending the output cuts might encourage rival U.S. shale oil firms to pump more crude.

Rising U.S. production has been a persistent thorn in OPEC's side and the rig increased for a second straight week.

U.S. output rose in September to 9.5 million bpd, the highest monthly output since 9.6 million bpd in April 2015, according to government data going back to 2005. On an annual basis, U.S. output peaked at 9.6 million bpd in 1970.



Story by Aaron Sheldrick; Editing by Richard Pullin and Tom Hogue from Reuters.

reuters.com 12 04 2017 04:47 GMT

We invite all our readers to share with us
their views and comments about this article.
Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

 

 

 

 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.