Crude Oil Falls for Second Day as U.S. Rig Count Rises

Crude oil slid for a second session on Monday, down more than 1 percent from last week’s 2016 highs on concerns over a supply glut after the U.S rig count rose for the first time since December.

U.S. energy firms last week added one oil rig after 12 weeks of cuts, according to data by industry firm Baker Hughes. The addition, coming after oil rigs had fallen by two-thirds over the past year to 2009 lows, showed the fall in crude drilling stabilising after a 50-percent price rally since February.

U.S. crude dropped 80 cents, or 2.03 percent, to $38.64 a barrel by 0747 GMT. The market on Friday climbed to $41.20 a barrel, its highest since early December, before losing ground to settle down nearly 2 percent at $39.44.

Reuters

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.