While that was bullish for the long-oversupplied market, Flynn pointed out that the number of active drilling rigs in the US - a barometer of future production activity - rose by 10 this week to 351, the fifth gain in six weeks. PHOTO: REUTERS
Prices plunged nearly 5% Thursday, leaving the market ripe for bargain pickers.
The US June employment report, showing 287,000 jobs added in June following a dismal May, eased some concerns about the economy.
The US benchmark West Texas Intermediate for August delivery, rose 27 cents to $45.41 a barrel on the New York Mercantile Exchange.
Brent North Sea oil for September delivery, the global benchmark, closed at $46.76 a barrel in London, a gain of 36 cents from Thursday’s settlement.
“The job number is the main feature for today in the US market,” said Phil Flynn of Price Futures Group. He said the data suggested the strong demand to continue because the economy was not as bad as feared.
Friday’s fresh buying was supported by investors finally focusing on a steep fall in US production reported Thursday, which the market at first completely ignored, according to Commerzbank analysts. US crude output fell by 194,000 barrels a day last week to 8.43 million barrels a day, down 12% from a year ago.
While that was bullish for the long-oversupplied market, Flynn pointed out that the number of active drilling rigs in the US - a barometer of future production activity - rose by 10 this week to 351, the fifth gain in six weeks.
Published in The Express Tribune, July 10th, 2016.
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