Breaking News

Oil Prices Head for Weekly Gains Ahead of U.S. Drilling Activity

CommoditiesSep 14, 2018 04:34AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Oil recovers from sharp decline, on track for weekly gains ahead of U.S. rig count - Oil prices recovered on Friday from the prior session’s sharp decline and remained on track for solid weekly gains as investors looked ahead to the latest gauge of U.S. production.

New York-traded West Texas Intermediate crude futures rose 41 cents, or 0.60%, at $69.00 a barrel by 4:29 AM ET (8:29 GMT).

Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., gained 27 cents, or 0.35%, to $78.45.

Despite Wednesday’s sharp drop in crude prices, both barrels were still on track for weekly gains of 1.8% and 2.0%, respectively, as traders continue to evaluate global supply and demand.

Traders will focus Friday on the latest data on U.S. crude production from Baker Hughes.

The U.S. rig count, an early indicator of future output, rose by 2 to 862 last week, hovering near its highest levels since March 2015.

The International Energy Agency said Thursday that global crude supplies hit a record high in August.

The agency also warned that oil-demand growth could come under pressure as a stronger greenback could raise the cost of importing energy, while an "escalation of trade disputes" would likely be another headwind to demand growth.

Meanwhile, as part of America's continual effort to bring down oil prices in the face of November’s sanctions on Iran’s exports, the country’s energy secretary Rick Perry met with his Russian counterpart Alexander Novak in Moscow on Thursday, urging Novak to cooperate as leading energy producers to ensure global market stability. He told Novak that both countries are eager to keep the market competitive. He had met with Saudi Arabia officials earlier in the week. The three countries are the biggest producers of oil in the world.

After the Moscow meeting, Perry told journalists, “The [Saudi Arabia] kingdom, the members of OPEC that are opting their production to be able to make sure that the citizenry of the world does not see a spike in oil price…are to be admired and appreciated, and Russia is one of them.”

He added that the U.S., Russia and Saudi Arabia are working together to ensure accessibility to affordable energy.

Meanwhile, the Joint Technical Committee - composed of representatives from the Organization of Petroleum Exporting Countries and non-OPEC major producers led by Russia - is expected to meet on September 17 to consider proposals on distributing the agreed output increase of 1 million barrels per day.

OPEC, Russia and other non-members agreed in June to return to 100% compliance with oil output cuts that began in January 2017, after underproduction by some had pushed compliance above 160%.

According to the sources cited, there are four proposals on the table that will be discussed before being presented to ministers attending the next monitoring meeting on September 23 in Algeria.

In other energy trading, gasoline futures fell 0.13% to $1.9960 a gallon by 4:31 AM ET (8:31 GMT), while heating oil rose 0.22% to $2.2283 a gallon.

Lastly, natural gas futures traded down 0.32% to $2.808 per million British thermal units.

Oil Prices Head for Weekly Gains Ahead of U.S. Drilling Activity

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. 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
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email