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Oil Prices Rise on Lower Drilling Activity, Key Meetings Ahead

Oil Prices Rise on Lower Drilling Activity, Key Meetings Ahead© Reuters. Oil heads higher as U.S. drilling drops, focus on upcoming meetings

Investing.com – Crude prices rose on Monday after data showed a decrease in U.S. drilling activity and market participants looked ahead to key meetings.

New York-traded gained 31 cents, or 0.46%, at $68.06 a barrel by 10:50 AM ET (14:50 GMT).

Meanwhile, , the benchmark for oil prices outside the U.S., rose 55 cents, or 0.72%, to $77.38.

U.S. drillers cut out two rigs last week, bringing the total to , according to energy services company Baker Hughes. The so-called rig count in the U.S. has stagnated around 860 active drillers since May.

In key meetings focused on global production, in Washington, the Department of Energy said, as the Trump administration encourages big oil-producing countries to keep output high ahead of Washington’s renewed sanctions on Iran’s crude exports.

Perry will also meet with Russian Energy Minister Alexander Novak, on Thursday in Moscow, a U.S. source and a diplomatic source told Reuters on Sunday night.

Meanwhile, the Joint Technical Committee – composed of representatives from the Organization of Petroleum Exporting Countries and non-OPEC major producers led by Russia – is expected to to consider proposals on distributing the agreed output increase of 1 million barrels per day.

OPEC, Russia and other non-members agreed in June to return to 100% compliance with oil output cuts that began in January 2017, after underproduction by some had pushed compliance above 160%.

According to the sources cited, there are four proposals on the table that will be discussed before being presented to ministers attending the next monitoring meeting on September 23 in Algeria.

In other energy trading, inched up 0.05% to $1.9765 a gallon by 10:53 AM ET (14:53 GMT), while advanced 0.20% to $2.2226 a gallon.

Lastly, edged down 0.11% to $2.773 per million British thermal units.

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Source: Investing.com

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