Oil falls most in 10 weeks as US rig count gains, dollar rises
NEW YORK—Crude fell the most in 10 weeks as the number of rigs drilling for oil in the US climbed and the US dollar strengthened against its peers. Futures tumbled 3 per cent in New York. Rigs targeting crude in the US rose by 3 to 328 this week, capping the first two-week gain since August, Baker Hughes Inc. said Friday. The dollar rose, making commodities denominated in the currency less attractive as an investment. Prices climbed earlier this week as US crude stockpiles declined and disruptions cut Canadian and Nigerian supply.
Tim Evans, an energy analyst at Citi Futures Perspective in New York, said even though the “market is so intensely focused on the rig count now,” the two-week gain won’t have much effect on actual supply in the near-term. “The uptick can at most be considered an inflection point where the rig-count decline stopped. It will take at least six months before it will be reflected in supply,” he said. Oil has surged about 90 per cent from a 12-year low in February as the global glut is trimmed by disruptions and a slide in US output, which is under pressure from the Organisation of Petroleum Exporting Countries’ policy of pumping without limits.
West Texas Intermediate for July delivery slipped $1.49 to settle at $49.07 a barrel