NEW YORK, May 4 — Oil held near US$59 (RM212.04) a barrel as US drillers reduced the number of active rigs for the 21st week.
Futures were little changed in New York after capping a seventh weekly advance. The number of rigs dropped by 24 to 679, according to data from Baker Hughes Inc.
That’s the fewest since September 2010. Iraq increased exports in April to the most in three decades, according to an Oil Ministry spokesman for the second-biggest producer in the Organisation of Petroleum Exporting Countries.
Oil has rebounded 36 per cent from its low in March amid signs a decline in drilling is leading to a slowdown in output from US shale producers.
The nation’s crude stockpiles are still at the highest in 85 years, raising speculation the rally may falter.
West Texas Intermediate for June delivery was at US$59.16 a barrel in electronic trading on the New York Mercantile Exchange, up 1 cent at 8:42 a.m. Sydney time.
The contract climbed 3.5 per cent last week in the longest run of gains since February 2014. The volume of all futures traded was about 75 per cent below the 100-day average.
Brent for June settlement rose 1 cent to US$66.47 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of US$7.30 to WTI. — Bloomberg
