Oil prices rise on reduced U.S. drilling activity, booming job market

By Henning Gloystein

SINGAPORE (Reuters) – Oil markets climbed on Monday on the back of a drop in the number of U.S. rigs drilling for more production and as the U.S. economy continued to create jobs, which industry hopes will drive higher fuel demand.

U.S. West Texas Intermediate (WTI) crude futures () were at $62.22 a barrel at 0102 GMT, up 18 cents, or 0.3 percent.

Brent crude futures () were at $65.70 per barrel, up 21 cents, or 0.3 percent, from their previous close.

“A falling rig count and the strong employment data may have helped support prices,” said William O’Loughlin, investment analyst at Rivkin Securities.

The U.S. economy added the biggest number of jobs in more than 1-1/2 years in February, with non-farm payrolls jumping by 313,000 jobs last month, the Labor Department said on Friday.

In oil markets, U.S. energy companies last week cut oil rigs for the first time in almost two months , with drillers cutting back four rigs, to 796, Baker Hughes (N:) energy services firm said on Friday.

Despite the lower rig count, which is an early indicator of future output, activity remains much higher than a year ago when, when just 617 rigs were active, and most analysts expect U.S. crude oil production , which has already risen by over a fifth since mid-2016, to 10.37 million barrels per day (bpd), to rise further.

That’s more than top exporter Saudi Arabia producers and almost as much as Russia pumps out, at nearly 11 million bpd.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.