The Financial Express

Oil prices slip after US drillers add two rigs

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Global oil prices fell on Monday after US shale drillers added two rigs last week, bringing the total count up to 749, highest since September.

The prices still held close to their highest since mid-2015, supported by an extension of output cuts agreed last week by OPEC and other producers, reports Reuters.

US West Texas Intermediate CLc1 was down 46 cents, or 0.8 per cent, at $57.90 a barrel at 0431 GMT. Brent futures LCOc1 were down 39 cents, or 0.6 per cent, at $63.34 a barrel.

The US rig count, an early indicator of future output, gained sharply from 477 rigs active a year ago after energy companies boosted spending plans for 2017.

Drillers over 2017 were encouraged to increase activity as crude prices started recovering from a multi-year price slump around the same time that the producers agreed to production cuts a year ago.

Last week, the producers agreed to extend those cuts of 1.8 million barrels per day (bpd) until the end of next year.

US output rose in September to 9.5 million bpd, the highest monthly output since 9.6 million bpd in April 2015, according to government data going back to 2005.

On an annual basis, US output peaked at 9.6 million bpd in 1970.

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