Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Crude futures fall sharply, in spite of reduced U.S. oil rig count

CommoditiesSep 18, 2015 02:47PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
WTI crude fell below $45 on Fri, while brent crude dipped under $48 -- U.S. crude futures fell sharply on Friday erasing massive gains from earlier in the week, even as oil rig totals nationwide extended a streak of minor declines.

On the New York Mercantile Exchange, WTI crude for October delivery traded in a broad range between $44.25 and $47.03 a barrel, before settling at 44.73, down 2.17 or 4.66% on the day. Energy traders locked into profits from Wednesday's session when crude futures surged nearly 6% to close over $47 a barrel, their highest closing level in the month of September. For the week, Texas Long Sweet futures were relatively flat, falling by 0.40% or less than a quarter a barrel.

On the Intercontinental Exchange (ICE), brent crude for November delivery wavered between $47.16 and $49.75 a barrel, before closing at 47.55, down 1.55 or 3.13% on the session. Brent crude future fell by nearly 3% on the week, amid a volatile stretch that saw it close by more than 3% in a positive or negative direction on three different sessions.

Meanwhile, the spread between the international and U.S. domestic benchmarks of crude stood at 2.91, above Thursday's level of 2.18 at the close of trading. Earlier this week, the spread dropped to its lowest level in eight months.

Oil services firm Baker Hughes (NYSE:BHI) said in its weekly rig count on Friday that U.S. oil rigs last week fell by eight to 644, moving lower for the third straight week. U.S. oil rigs nationwide are still down substantially from their level last fall when they peaked above a total of 1,600. The count wavered throughout the summer after falling for 25 consecutive weeks earlier this year.

Energy traders remain concerned that prices could continue to fall, amid a global market oversaturated by a glut of supply. Their worries were not assuaged in spite of a significant draw last week when U.S. crude stockpiles fell by 2.1 million to 455.9 million barrels. Despite the decline, inventories still remain near levels not seen for this time of year in at least the last 80 years.

Crude futures are down by more than 50% from its peak above $100 a barrel last summer, after OPEC rattled global energy markets with a strategic decision to keep its production ceiling unchanged. The tactic triggered a protracted battle between the U.S. and OPEC for global market share, causing prices to fall near six-year lows.

The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, rose more than 0.30% to an intraday high of 94.98, before falling back slightly to 94.85. The index was on pace late Friday afternoon to close down by approximately 0.5% for the week.

Investors continue to digest dovish comments from Federal Reserve chair Janet Yellen on Thursday, after the U.S. central banks held short-term interest rates at record near-zero lows. A rate hike is widely viewed as bullish for the dollar.

Dollar-denominated commodities such as crude become more expensive for foreign purchasers when the dollar appreciates.

Crude futures fall sharply, in spite of reduced U.S. oil rig count

Related Articles

Major fire sinks superyacht in British marina
Major fire sinks superyacht in British marina By Reuters - May 28, 2022 9

LONDON (Reuters) -Fire ripped through a superyacht in southwest England on Saturday, sending thick plumes of black smoke into the sky and eventually sinking the vessel after it...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email