U.S. crude approaches two-year high

• Oil prices rose on Friday, with U. S. crude touching a two- year high, strengthening after U. S. rig data suggested drilling in the United States would throttle back.

The latest rig data supported the market’s view that a global supply glut is receding. Throughout the week, prices have been bolstered by rising global demand data and expectations that OPEC and other producing countries will extend a deal to cut output.

U. S. West Texas Intermediate ( WTI) crude settled up US$ 1.10 or 2 per cent, at US$55.64 a barrel, the highest since July 2015.

Global benchmark Brent futures settled up US$ 1.45 or 2.4 per cent at US$ 62.07 a barrel. Brent has risen around 38 per cent since its low in June 2017.

Both grades gained more than 3 per cent in the week.

U.S. energy companies cut eight oil rigs this week, the biggest reduction since May 2016, extending a drilling decline that started over the summer when prices slipped below US$50 a barrel.

The oil rig count fell to 729 in the week to Nov. 3, the lowest level since May, General Electric Co.’s Baker Hughes energy services firm said in its closely followed report on Friday.

Hedge funds and money managers raised their bullish wagers on U. S. crude to the highest in more than six months, data showed on Friday.

The speculator group raised its combined futures and options position in New York and London by 63,072 contracts to 343,705, in the week to Oct. 31, the U. S. Commodity Futures Trading Commission ( CFTC) said. That was the highest level since mid-April.

“The market continues to find support from expectations that we’re going to see the cut extended and from robust demand,” said Gene McGillian, director of market research at Tradition Energy in Stamford, Connecticut.