Monday, March 21, 2016

Oil prices extend losses after U.S. rig count rises for first time in 13 weeks

One more U.S. oil rig went active last week

Crude oil prices fell on Monday, extending a decline seen late last week after the first in the number of number of active U.S. oil-drilling rigs in 13 weeks.
West Texas Intermediate crude futures for April delivery CLJ6, -1.88%  fell 64 cents, or 1.6%, to $38.80 a barrel. The contract, which expires at Monday’s settlement, closed down 1.9% on Friday at $39.44 a barrel, after pushing above $41 during that session. May crude CLK6, -1.58%  dropped 53 cents, or 1.3%, to $40.78 a barrel. Oil still managed a fifth weekly rise last week.
May Brent crude LCOK6, -1.31%  , the global benchmark, dropped 41 cents, or 1%, to $40.79 a barrel.
On Friday, Baker Hughes BHI, +1.35%  reported that the number of active U.S. oil-drilling rigs increased by 1 to 387 — the first in 13 weeks — though total active domestic oil rigs fell by 4 to 476. After that rig data was announced, WTI crude, which had touched lows under $40 ahead of the release, added to losses.
Oil still managed a fifth weekly rise last week, spurred by ongoing hopes that an April 17 meeting in Doha, Qatar between major oil producers could lead to higher prices.

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