Oil prices up with decline in US oil rig count

Oil prices up with decline in US oil rig count

Oil prices up with decline in US oil rig count

Oil prices fell on Monday, as the market was weighed by Russia's intention to increase supply with OPEC to compete for more market share.

Brent futures rose 35 cents to $ 71.97 a barrel.

Oil prices rose on Tuesday, as investors have been anxious about falling global supply due to US sanctions against Iran and Venezuela, as well as clashes in Libya.

The 14-nation OPEC and a group of countries led by Russian Federation in January after a glut of oil hit the market and crude prices collapsed at the end of 2018.

While Brent crude had been well on-route to secure fourth consecutive weekly rise on Thursday (April 18th), the US West Texas Intermediate crude was slightly up at $64.02 a barrel, and the US crude had added 0.2 percent this week so far despite a surprise drop of US crude oil inventories and drilling rigs. Both standards recorded a 1 percent weekly increase.

On April 18, the AZERI Light FOB Ceyhan oil price was $73.82 per barrel, or $0.13 more than the previous price.

At the end of the Good Friday trading week, WTI settled up at 64.00 USA dollars a barrel on the New York Mercantile Exchange, while Brent crude closed up at 71.91 dollars a barrel on the London ICE Futures Exchange.

Oil prices rose slightly on Thursday against the background of declining US reserves, declining production by major producers and current USA sanctions against Venezuela and Iran.

Additionally, U.S. imports dipped back towards the 6 million barrel per day mark while implied crude supply numbers remained firm. For the first time in three weeks, the energy companies cut the US drilling rigs.

The OPEC heavyweight used 259,000 bpd of crude oil to generate power in February, down from 377,000 bpd the month before, while Saudi demand for oil products in February was 2.157 million bpd, up slightly from 2.073 million bpd in January, according to the data.

A steep decline in production from Saudi Arabia, Venezuela and Iraq led to rise.

On Wednesday, oil prices dropped slightly as the decline in US weekly oil stockpiles fell short of market estimates, which had expected larger decrease.

Washington, however, granted Iran's eight main buyers of oil, mostly in Asia, waivers to the sanctions which allowed them limited purchases for half-a-year. U.S. commercial crude oil inventories fell by 1.4 million barrels, or 0.3 percent, to 455.2 million barrels for the week ending April 12, the U.S.' Energy Information Administration (EIA) released Wednesday.

The EIA also reported a gasoline production rate of 9.9 million barrels daily last week and a distillate fuel production rate of 4.8 million barrels daily.

Major oil producers have reached a deal to reduce oil production by 1.2 million barrels per day at the 5th meeting of OPEC and non-OPEC ministers held in Vienna on December 7.