Crude prices recover lost ground
By Gunay Camal
Crude prices recovered lost ground on April 24 following big losses last week, driven by expectations that OPEC will extend a pledge to cut output to cover all of 2017, although a relentless rise in U.S. drilling capped gains.
U.S. West Texas Intermediate (WTI) crude oil futures added 32 cents, or 0.64 percent, by 0649 GMT, but were still just below the $50 mark pierced on Friday at $49.84 a barrel, Reuters reported. Brent crude futures rose 35 cents, or 0.67 percent, to $52.31 per barrel.
The price of OPEC’s basket of 13 crudes stood at $49.99 a barrel on Apr. 21, compared to $50.48 on April 20, the cartel said in a message on its website.
The oil prices fell on the back of stubbornly high crude supplies, despite a pledge by the OPEC and some other producers to cut production by almost 1.8 million barrels per day (bpd) for six months from January 1 to support the market.
The fall was also supported by the report of the US Baker Hughes company about the growing number of drilling rigs in the country. The number of drilling rigs in the U.S. has increased by 1.18 percent and stood at 857 over the working week ending on April 21. This figure has increased by 98.8 percent per annum.
Baker Hughes estimates that during the reporting period, the US saw a 0.73 percent increase in the number of oil drilling rigs, while the number of gas drilling rigs has increased by 3.08 percent.
Meanwhile, with a view to halt a further decline in prices, some OPEC states and other allied producers has recommended an extension of output cuts by another six months from June.
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