Oil Inches Down as Investors Look Ahead to Rig Count Data

Investing.com – U.S. crude oil prices were lower on Friday but was supported by trade talks and news that Saudi Arabia is suspending oil shipping in the Red Sea.

West Texas fell 0.29% to $69.41 a barrel as of 4:55 AM ET (8:55 GMT). Meanwhile futures, the benchmark for oil prices outside the U.S., decreased 0.24% to $74.36.

Prices were down from a three-day high, but were offset by trade talks between the U.S. and European Union.

U.S. President Donald Trump and European Commission President Jean-Claude Juncker meet on Wednesday and agreed to not impose car tariffs as the countries begin negotiations to cut trade barriers.

Meanwhile Saudi Arabia, the biggest oil exporter in the world, said it was temporarily halting oil shipments through the Red Sea after an attack by Yemen’s Houthi movement.

The shipments through the shipping lane of Bab al-Mandeb links Egypt’s Suez canal and SUMED crude pipeline. An estimated 4.8 million barrels per day flow through the Bab al-Mandeb in 2016, according to the U.S. Energy Information Administration.

Investors are looking ahead to weekly rig count data from , which comes out at 1:00 PM ET (17:00 GMT) and is a leading indicator of demand for oil products.

Data from the Energy Information Administration on Wednesday showed U.S. crude supplies fell last week.

Inventories of U.S. crude fell by 6.147 million barrels for the week ended July 20, much more than expectations for a draw of 2.600 million barrels, according to data from the EIA.

The massive draw in crude supplies emerged as imports fell by 2.518 million barrels a day (bpd) and exports rose by 1.222 million bpd, the EIA said.

In other energy trading, increased 0.21% at $2.1625 a gallon, while fell 0.21% to $2.1723 a gallon. were up 0.22% to $2.768 per million British thermal units.

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