Oil up on expectation of Saudi production restraint, lower US rig count
Oil prices edged up after a 2% slide marked on Friday, on expectations that Saudi Arabia would continue to restrain its output in order to support prices, and as the amount of rigs drilling for new oil in the United States dipped. Oil ports, producers and refiners in Louisiana, Mississippi and Alabama, which shut facilities ahead of Hurricane Nate, were planning to reopen on Monday as the storm moved inland, away from most energy infrastructure on the U.S. Gulf Coast. A reported cut in the number of U.S. oil rigs drilling for new production provided some price support. The oil rig count fell by two to 748 in the week to October 6, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday. As a sign of the more positive sentiment in the market, hedge funds and money managers raised their bullish bets on U.S. crude futures for the third week in a row, the U.S. Commodity Futures Trading Commission reported on Friday.
Trading activity will remain subdued today due to the Columbus Day federal holiday in the United States though markets are open.
Source: Reuters
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