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Oil prices rise on reduced U.S. drilling activity, booming job market

Reuters  |  SINGAPORE 

By Gloystein

SINGAPORE (Reuters) - climbed on Monday on the back of a drop in the number of U. S. rigs drilling for more production and as the U. S. economy continued to create jobs, which industry hopes will drive higher fuel demand.


S. Intermediate (WTI) crude futures were at $62.22 a barrel at 0102 GMT, up 18 cents, or 0.3 percent.

Brent crude futures were at $65.70 per barrel, up 21 cents, or 0.3 percent, from their previous close.

"A falling rig count and the strong employment data may have helped support prices," said William O'Loughlin, at

The U. S. economy added the biggest number of jobs in more than 1-1/2 years in February, with non-farm payrolls jumping by 313,000 jobs last month, the Labor Department said on Friday.

In oil markets, U. S. cut for the first time in almost two months, with drillers cutting back four rigs, to 796, firm said on Friday.

Despite the lower rig count, which is an early indicator of future output, activity remains much higher than a year ago when, when just 617 rigs were active, and most analysts expect U. S. crude oil production, which has already risen by over a fifth since mid-2016, to 10.37 million barrels per day (bpd), to rise further.

That's more than top exporter producers and almost as much as pumps out, at nearly 11 million bpd.

(Reporting by Gloystein; Editing by Joseph Radford)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, March 12 2018. 09:42 IST