Crude Oil Prices Settle Higher to Snap Two-Week Losing Streak

Investing.com – Crude oil prices settled higher shrugging off data showing the number of US oil rigs rose for the fourth straight week.

On the New York Mercantile Exchange for March delivery rose 34 cents to settle at $61.68 a barrel, while on London’s Intercontinental Exchange, gained 37 cents to trade at $64.70 a barrel.

The number of oil rigs operating in the US jumped by seven to 798, the highest level since April 2, 2015, according to data from energy services firm Baker Hughes.

That added to investor fears that rising US oil output would offset major oil producers’ efforts – as part of the production-cut agreement – to rid the market of excess oil stockpiles.

The rise in US oil rigs comes just two days after data showed US producers continued to ramp up output.

The Energy Information Agency disclosed its weekly supply totals report showing U.S. crude output hit a record 10.27 million barrels per day. This keeps the US on track to meet the EIA’s recent estimate for domestic production to top 11 million barrels per day by year-end.

Also weighing on sentiment somewhat was a duo of reports earlier this week from OPEC and the International Energy Agency (IEA) claiming that non-OPEC output, led by the US, was set to surge in the months ahead.

Non-OPEC production, led by the US, is likely to grow by more than demand in 2018, the International Energy Agency cited in a monthly report. The energy body also said that the underlying oil market fundaments appeared “less supportive for prices” so far this year.

The IEA report echoed some of the findings observed in the OPEC monthly report released Monday, showing the oil cartel revised upward its estimate for non-OPEC output to a total of 59.26 million bpd this year, 320,000 bpd higher than its previous forecast.

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