Oil Prices Increase with Pre-Holiday Buying; Rig Counts Gain in the U.S
On Friday, oil prices moved up before the July 4 holiday and Brent crude also posted its biggest weekly gain in more than a month. A weaker dollar also pushed up prices for most of the commodities.
There was also a spike in the number of rig counts in the United States. Data from Baker Hughes, the oil services firm, oil producers added eleven rigs in the week. It's the largest gain since December. That might be a signal of end to a close-to two year tumult in drilling. It also shows confidence of the shale drillers in a stabilized market prompting an expected expansion in 2016.
Last week the rig counts dropped by seven and this week's addition of eleven rigs increased the numbers to 341in the U.S. according to Baker Hughes Inc on Friday.
In the last five weeks, producers added oil rigs for the fourth time. Oil explorers in one of the busiest oil patches in the U.S, the Permian Basin of West Texas, again added to the activity which climbed by four to a total of 154 oil rigs operating in the region.
Earlier disruptions in supply and drop in U.S. crude output have also helped in trimming the global oil surplus which is expected to be heading towards balancing demand and supply.