Oil falls most in 10 weeks as US rig count gains, dol­lar rises

Pakistan Observer - - 14 -

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

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