Oil prices rise amid falling US oil rig count

Oil Price

Mumbai, JUne 8 : Oil prices went up on Friday, as US oil rig count fell sharply this week, easing concerns there would be a potential supply glut and Saudi Arabia called for oil production cut extension.

The number of US oil rigs dropped 11 to 789 for the week ending June 7, US energy services firm Baker Hughes reported on Friday.

The figure marks its largest fall on a weekly basis since April and hits the lowest level since February 2018, the Xinhua news agency reported.

Year on year, the oil rig count retreated a significant 73 from the 862 in the same week last year.

Saudi Arabia’s energy minister on Friday called on OPEC and its allies to extend oil output cuts.

“On the OPEC side, a rollover is almost in the bag. The question is to calibrate with non-OPEC,” Saudi Energy Minister Khalid al-Falih said during a forum in St. Petersburg.

The West Texas Intermediate for July delivery increased 1.4 US dollars to settle at 53.99 dollars a barrel on the New York Mercantile Exchange, while Brent crude for August delivery rose 1.62 dollars to close at 63.29 dollars a barrel on the London ICE Futures Exchange.

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