Crude Oil gains In Asia on US Rig Count Numbers, Strong Demand Tone
Crude oil gained in Asia, getting some support as the number of rigs drilling for oil dipped last week and on continued strong demand cues from the regional market. Last week, oil settled on a mixed note on Friday, with prices notching their third-consecutive weekly loss amid concerns over rising production in the U.S. The number of oil drilling rigs fell by four to 747 in the week to Dec. 15, data from General Electric (NYSE:NYSE:GE)'s Baker Hughes energy services unit showed, the first cut to drilling numbers in six weeks. However, the rig count, an early indicator of future output, is still much higher than a year ago when only 510 rigs were active. The steady increase in U.S. production has taken some of the edge off an OPEC-led initiative to support the market by cutting production. The Organization of Petroleum Exporting Countries (OPEC), along with some non-OPEC producers led by Russia, agreed last month to extend current oil output cuts for a further nine months until the end of 2018. The deal to cut oil output by 1.8 million barrels a day (bpd) was adopted last winter by OPEC, Russia and nine other global producers. The agreement was due to end in March 2018, having already been extended once.
Source :Investing
More will update soon!!!
