Oil falls back towards 2-month lows amid rising U.S. rig count
Investing.com
Published Jul 18, 2016 09:44AM ET
Oil falls back towards 2-month lows
Investing.com - Oil prices fell sharply in North American trade on Monday, dropping back towards two-month lows amid signs of an ongoing recovery in U.S. drilling activity.
Investors also digested news of a failed coup in Turkey over the weekend, which eased concerns over a potential disruption to supplies from the region.
Crude oil for August delivery on the New York Mercantile Exchange fell by more than 2% to a session low of $45.59 a barrel. It last traded at $45.84 by 13:40GMT, or 9:40AM ET, down 81 cents, or 1.74%.
Oilfield services provider Baker Hughes said late Friday that the number of rigs drilling for oil in the U.S. increased by six last week to 357, the third straight weekly gain and the sixth increase in seven weeks.
The renewed gain in U.S. drilling activity fueled speculation that domestic production could be on the verge of rebounding in the weeks ahead, underlining worries over a supply glut.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for September delivery slumped 78 cents, or 1.64%, to $46.83 a barrel, after falling to an intraday low of $46.52, as market players dismissed worries of supply disruptions from the attempted coup in Turkey.
The Turkish government said on Sunday it was in full control of the country and economy after thwarting an apparent military coup to topple President Tayyip Erdogan late on Friday.
The news eased concerns over a disruption to the flow of oil passing through the Turkish straits, a crucial shipping and trading route.
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Written By: Investing.com
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