Crude Oil Rises In Asia Ahead of Rig Count Data
Crude gained in Asia on Friday ahead of rig count data in the U.s. that will set the tone on supply.
On the New York Mercantile Exchange, WTI crude for December delivery rose 0.43% to $45.58 a barrel.
Last week, Baker Hughes (N:BHI) said that the number of rigs drilling for oil in the U.S. decreased by 10 last week to 595, the seventh straight weekly decline. Over the prior six weeks, drillers had cut 70 rigs.
A lower U.S. rig count is usually a bullish sign for oil as it signals potentially lower production in the future.
Overnight, crude futures ticked up on Thursday during a choppy day of trading, as investors continued to react to bearish supply data from a massive stockpile build last week.
On the Intercontinental Exchange (ICE), Brent crude for December delivery wavered between $47.70 and $48.72 a barrel, before closing at $48.11, up 0.26 or 0.54% on the day. Brent futures are still down by approximately 1.5% over the last month of trading.
Meanwhile, the spread between the international and U.S. domestic benchmarks of crude stood at $2.82, above Wednesday’s level of $2.41 at the close of trading.