MARKET SHARE: Crude oil futures mixed on rising US rig count, lower OPEC supply.
According to data released by Baker Hughes on Friday, US oil rig counts inched up by one to 862 for the week ended June 8.
“WTI declined as investors digested the sustained climb in oil rigs for the third consecutive week into June 8,” OCBC Commodity economist Barnabas Gan said.
The Permian oil rig count rose by three for the week ended June 8 to 479. The basin, sited in West Texas and southeastern New Mexico, is the US’ most active oil and gas drilling area.
Last week’s Permian oil rig count has risen 13 of the last 18 weeks and is at its highest level since mid-2015.
The data comes at a time while US crude production is at record high of 10.8 million b/d as of June 1, latest figures from the US Energy Information Administration showed.
Meanwhile, some support came from lower OPEC crude production, which slid for the fourth straight month in May to its lowest in over a year, latest S&P Global Platts survey showed.
A strong economy, summer demand, and Venezuela’s woes are likely to keep prices high at the pump for a while.