Crude Oil Prices Settle Higher But Can’t Avoid Weekly Loss

Investing.com – WTI crude oil prices settled higher Friday, despite data showing a ramp up in the number of U.S. oil rigs, signalling a potential expansion in domestic crude output.

On the New York Mercantile Exchange for August delivery rose 1.2% to settle at $73.80 a barrel, while on London’s Intercontinental Exchange, fell 23 cents to trade at $77.16 a barrel.

Oilfield services firm Baker Hughes reported on Friday that the number of U.S. oil drilling rigs in operation rose by 5 to 863 in the week to June 29. That comes on the back of two-straight weeks of falling rig counts.

Crude oil prices were supported, however, by ongoing bets on a shortage in global crude supplies amid rising oil demand, the potential for a larger drop in Iranian crude exports – amid looming U.S. sanctions – and ongoing challenges in Venezuela’s energy industry.

Expectations for a shortage in global crude supplies come against the backdrop of rising Russian and Saudi output.

The Saudis reportedly informed OPEC that they raised output by 458,000 barrels a day (bpd) in June, from the prior month, Reuters reported, citing OPEC.

A monthly S&P Global Platts OPEC survey, meanwhile, showed Saudi Arabia pumped 10.39 million bpd in June, up from 10.01 million bpd in May – the highest Saudi production level since December 2016.

Crude oil prices posted a weekly loss after suffering a hefty sell-off Thursday, when U.S. crude supplies unexpected rose as imports surged.

Inventories of U.S. crude rose by 1.245 million barrels for the week ended June 30, confounding expectations for of 5.20 million barrels, according to data from the Energy Information Administration (EIA).

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