Oil prices jump on statistics of drilling rigs in U.S.
By Sara Israfilbayova
World oil prices are rising on Friday amid investors’ expectations of data on the dynamics of the number of drilling rigs in the U.S. for the week.
Brent futures, the global benchmark, were up 0.3 percent, at $69.89 a barrel, U.S. West Texas Intermediate (WTI) crude was up 0.5 percent, at $66.13 a barrel, according to Reuters.
The data of the American oil and gas service company Baker Hughes, a GE Company (BHGE) will be announced on February 2. As a result of the work week ended on January 26, the number of drilling rigs increased by 11 units, or by 1.17 percent, to 947 units. In annual terms, the number of drilling rigs increased by 235 units, or 1.3 times. The number of oil drilling rigs increased by 12, or 1.6 percent, to 759 units.
Oil is becoming more expensive, despite recent data from the U.S. Energy Department on the growth of reserves and production in the country over the past week.
Stocks for the week to January 26 increased by 6.8 million barrels, or 1.6 percent, to 418.4 million barrels. The indicator was significantly higher than analysts’ forecasts, which expected the stock to grow by only 126,000 barrels. Oil production increased by 0.4 percent, or 41,000 barrels per day, to 9.919 million barrels per day.
Meanwhile, production by the Organization of the Petroleum Exporting Countries (OPEC) rose in January from an eight-month low as higher output from Nigeria and Saudi Arabia offset a further decline in Venezuela and strong compliance with a supply reduction pact, a Reuters survey showed.
OPEC pumped 32.4 million barrels per day (bpd) in January, the survey found, up 100,000 bpd from December. Last month’s total was revised down by 110,000 bpd to the lowest since April 2017.
Adherence by producers included in the deal to curb supply rose to 138 percent from 137 percent in December.
In November 2016, the OPEC summit was held in Vienna, where OPEC members reached an agreement on reducing oil output by 1.2 million barrels per day. In December 2016 was a meeting of oil producers outside the OPEC. The meeting ended with signing an agreement to reduce oil production by a total of 558,000 barrels per day starting from January 2017.
OPEC and its partners decided to extend its production cuts till the end of 2018 in Vienna on November 30, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry.
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