Oil climbs on weaker dollar, but rise in US drilling drags

WTI Crude Oil

Daily August West Texas Intermediate Crude Oil

This is while the price for August futures of West Texas Intermediate (WTI) has grown by 1.14 percent and stood at $43.50 per barrel. It touched its lowest since August 11 at $42.05 on Wednesday last week.

Brent crude, the global benchmark, increased 1.23 per cent to $46.10 per barrel in morning trading after it plunged below $45 last week to its lowest level since November 2016.

Crude reached bear-market territory last week amid concern that the ongoing rebound in USA shale production is derailing efforts by other major producers to rebalance the market. The rig count has risen 23 weeks in a row, the longest streak on record.

USA energy firms added 11 oil rigs in the week to June 23, bringing the total count up to 758, the most since April 2014, according to data from energy services firm Baker Hughes Inc.

Oil prices rose early on Monday, but an increase in USA drilling activity stoked worries that a global supply glut will persist despite an OPEC-led effort to curb output.

Oil price fell for a fifth week in the United States after slipping into a bear market on concern that rising production from the U.S.to Libya will offset cuts from OPEC and its allies.

Meanwhile, traders will also continue to pay close attention to comments from global oil producers for evidence that they are complying with their agreement to reduce output this year.

Natural gas futures remained flat at 2.951 a gallon at the NYMEX.

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