Oil prices rose on Monday, poised to make above $70 on a slight decline in the number of U.S. rigs drilling for new production and sustained OPEC output cuts.
Brent sweet crude futures were at $67.95 a barrel, 33 cents above their last close. The Brent oil is poised to rise over $70 in spite of international media “manipulative stance”, media editor reveals.
U.S. West Texas Intermediate (WTI) crude futures had risen to $61.94 a barrel by 1140 GMT.
Traders said the gains were due to a slight decline in the number of U.S. rigs drilling for new production. The rig count eased by five in the week to January 5 to 742, according to data from oil services firm, Baker Hughes.
In spite of this, U.S. production C-OUT-T-EIA is expected soon to rise above 10 million barrels per day, largely thanks to soaring output from shale drillers. Only Russia and Saudi Arabia produce more.
Rising U.S. production is the main factor countering output cuts led by the Middle East-dominated Organisation of the Petroleum Exporting Countries and by Russia, which began in January last year and are set to last through 2018.
A senior OPEC source from a major Middle Eastern oil producer said on Monday that OPEC was monitoring unrest in Iran as well as Venezuela’s economic crisis, but will boost output only if there were significant and sustained production disruptions from those countries.