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Oil prices fall on rising U.S. rig count, Illinois refinery fire

Reuters  |  SINGAPORE 

By Gloystein

SINGAPORE (Reuters) - Oil prices fell by more than 1 percent on Monday as U.S. drilling activity picked up and as a refinery fire in the U.S. state of resulted in the shutdown of a large crude distillation unit.

U.S. Intermediate (WTI) crude futures were at $51.92 per barrel at 0144 GMT, down 80 cents, or 1.5 percent, from their last settlement.

International Brent were down 71 cents, or 1.1 percent, at $61.39 a barrel.

In the United States, increased the number of operating for the second time in three weeks, a weekly report by said on Friday.

Companies added 7 in the week to Feb. 8, bringing the total count to 854, pointing to a further rise in U.S. crude production, which already stands at a record 11.9 million bpd.

WTI prices were also weighed down by the closure of a 120,000 barrels per day (bpd) crude distillation unit (CDU) at Phillips 66's Wood River, Illinois, refinery following a fire on Sunday.

Elsewhere, the of Russian Rosneft, Igor Sechin, has written to the Russian saying Moscow's deal with the Organization of the Petroleum Exporting Countries (OPEC) to withhold output is a strategic threat and plays into the hands of the

The so-called OPEC+ deal has been in place since 2017, aimed at reining in a global supply overhang. It has been extended several times and, under the latest deal, participants are cutting output by 1.2 million bpd until the end of June.

OPEC and its allies will meet on April 17-18 in to review the pact.

Preventing crude prices from falling much further have been U.S. sanctions on Venezuela, targetting its firm

"The issues in continue to support prices. Reports are emerging that is scrambling to secure new markets for its crude, after the U.S. placed additional sanctions on the country," said on Monday.

(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, February 11 2019. 08:45 IST
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