Investing.com – Crude oil prices continued to trade near recent multi-year highs on Monday, helped by news of a decline in U.S. oil rigs, although ongoing concerns over rising U.S. production were expected to limit gains.
The U.S. West Texas Intermediate February contract was up 5 cents or about 0.08% at $61.51 a barrel by 04:00 a.m. ET (08:00 GMT), not far from last week’s two-and-a-half year high of $62.21.
Elsewhere, for March delivery on the ICE Futures Exchange in London held steady at $67.59 a barrel, still close to the previous session’s nearly three-year peak of $68.27.
Oil prices remained supported after Baker Hughes on Friday reported a decline by five to 742 in the number of U.S. rigs in the week to January 5.
However, optimism was limited by news U.S. production is expected to exceed 10 million barrels per day (bpd) very soon, mainly due to increasing output from shale drillers.
Rising U.S. production could undermine production cut efforts led by the Organization of the Petroleum Exporting Countries and Russia. The producers agreed in December to extend current oil output cuts until the end of 2018.
The deal to cut oil output by 1.8 million barrels a day (bpd) was adopted last winter by OPEC, Russia and nine other global producers. The agreement was due to end in March 2018, having already been extended once.
Elsewhere, fell 0.20% at $1.785 a gallon, while gained 1.54% to $2.837 per million British thermal units.
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Source: Investing.com
