By Christian Berthelsen And Georgi Kantchev
U.S. oil prices gave back gains from earlier in the session
Friday after the number of rigs drilling for crude eased modestly,
dashing expectations for a larger decline that would substantially
reduce American oil production.
Oilfield services company Baker Hughes Inc. said its count of
rigs drilling for oil in the U.S. fell by 33 this week to 986,
slipping below 1,000 for the first time since June 2011.
Though that number is down 31% from a year ago, the weekly
decline fell short of what analysts said would be necessary to have
a substantial effect. Research consultancy Ritterbusch and
Associates said the weekly count would have to fall by at least 50
to affect the market.
The U.S. oil benchmark, which had traded as high as $49.50 a
barrel earlier in the session, pulled back after the data release
and last traded at $48.66, up 49 cents or 1%. The Brent crude
contract also gave back earlier gains, last trading at $61.32 a
barrel, up $1.27 or 2.1%.
Investors in recent months have been fixated on the number as an
indication of eventual supply cuts, though analysts caution a
reduction in the number of U.S. oil rigs in use doesn't immediately
translate to a fall in output, which is currently running at a
multiyear high of 9.3 million barrels a day.
March gasoline futures were up 5.57 cents, or 3.3%, at $1.7633 a
gallon on the Nymex. March diesel futures rose 5.09 cents, or 2.4%,
to $2.1867 a gallon. The contracts expire with the end of trading
Friday.
Write to Christian Berthelsen at christian.berthelsen
@wsj.com
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