The crude being pumped out of USA shale formations helped create a global glut that’s pushed prices down nearly 60 percent since June 2014.
Brent for November settlement added 33 cents, or 0.7 percent, to $48.02 a barrel on the London-based ICE Futures Europe exchange.
Crude prices erased early losses to rise by 1 percent or more on Friday after a report showing the fifth weekly decline in the USA oil rig count renewed the debate over falling production in the world’s top oil consumer.
The gas rig count ticked down to 197 rigs after losing one rig while the directional drill count jumped by three to 86 rigs.
USA crude production slowed by 40,000 barrels a day to 9.1 million last week, the smallest output since November 2014, according to Energy Information Administration data.
The number of oil rigs in use in the United States is collapsing again.
Here’s last week’s chart of the rig count, which collapsed over the past year as the price of oil crashed, and this will be updated as soon as the numbers cross.
In related news, Halliburton, Baker Hughes plan more divestitures for deal approval. The price reached its weekly high just ahead of Thursday’s report on the nation’s national gas inventory.
The reduction in the week ended October 2 brought the total rig count down to 614, the least since August, 2010. Five wells were reduced in the Eagle Ford (EF) in South Texas; two in the Niobrara in Colorado and Wyoming, and seven wells were reduced in Permian Basin in Eastern New Mexico and West Texas.
Canada saw its rig count drop to 176 after losing four oil rigs and two gas rigs.
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