Prices of oil futures rose modestly Monday as market participants continued to analyze the news of a modest increase in the number of US rigs.
Brent crude, which in March has risen by about 15 percent, still shows the highest monthly increase since April last year.
On Friday, Baker Hughes reported that the result of the week the number of drilling rigs in the US fell by 4 units ended March 18 to 476 units. In annual terms, a decline of 593 units or 55.47%. The number of oil rigs increased by 1 unit to 387 units. Thus, the tendency to reduce the index, which lasted for three months. The number of gas-producing plants has decreased by 5 units to 89 units. “The growing number of oil rigs 1 unit does not matter much, but it was a turning point and slightly affects the mood,” – said an analyst at Price Futures Group Phil Flynn. Commerzbank analysts said that oil production in the United States still seemed quite high, partly due to special factors such as the temporary increase in performance and price hedging strategies of manufacturers. “Therefore, we still expect that the oil production in the US will fall sharply in the coming weeks and months”, – experts said.
Support for oil also have hopes that the major oil producers limit production growth. Major producers, including OPEC, should discuss freezing production in the January lows at the meeting scheduled for April 17 in Qatar. But Iran has repeatedly stated that he will not participate in the agreement, while oil production in the country will not reach 4 million barrels per day, down 1 million barrels higher than the January level.
In addition, the CFTC data showed that a week before March 15, large speculators increased their net long positions in WTI crude oil at 25,604 contracts (+ 10%, to 269,856 contracts).
WTI for delivery in May rose to $41.44 a barrel. Brent for April rose to $41.30 a barrel.
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