Oil demolish on Monday after U.S. shale drillers added more rigs in week, but prices still held close to their highest since mid-2015, braced by an extension of output cuts agreed last week by OPEC and other canada entrepreneurs.
Drillers in the United States added two oil rigs in the week to Dec. 1, bringing the thoroughgoing count up to 749, highest since September, energy services limited company Baker Hughes said in its closely followed report late on Friday.
U.S. West Texas Transitional was down 46 cents, or 0.8 percent, at $57.90 a barrel at 0431 GMT. Brent futures were down 39 cents, or 0.6 percent, at $63.34 a barrel.
The U.S. rig upon rely on, an early indicator of future output, gained sharply from 477 rigs dynamic a year ago after energy companies boosted spending plans for 2017.
Drillers terminated 2017 were encouraged to increase activity as crude prices started recuperating from a multi-year price slump around the same time that the Format of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers, encompassing Russia, agreed to production cuts a year ago.
Last week, the processors agreed to extend those cuts of 1.8 million barrels per day (bpd) until the end of next year.
“The area of U.S. production growth and the strength of global oil demand in 2018 remain the greatest uncertainties,” BMI Research said in a note.
“OPEC (or rather Saudi Arabia) wish increasingly work to manage the market,” BMI said in the note.
The latest pact allows for producers to exit the deal early if the market overheats. Russian officials had put into worded concern that extending the output cuts might encourage combat U.S. shale oil firms to pump more crude.
Rising U.S. production has been a obstinate thorn in OPEC’s side and the rig increased for a second straight week.
U.S. yield rose in September to 9.5 million bpd, the highest monthly output since 9.6 million bpd in April 2015, concerting to government data going back to 2005. On an annual basis, U.S. production peaked at 9.6 million bpd in 1970.