Crude oil rises to 1-week high on signs of slower U.S. drilling activity
The optimism for the U.S. benchmark came after Baker Hughes BHGE, -1.08% reported that the number of active U.S. rigs drilling for oil was down 4 at 747 last week, breaking a three-week string of rising rig numbers. A drop in rigs implies a slowdown in drilling activity, which is usually boost oil prices.
Brent also got a boost from the closure of North Sea Forties pipeline due to a power outage.
“The outage of the North Sea’s most important oil and gas pipeline is continuing to lend support,” analysts at Commerzbank said in a note.
“As a result, there is currently a lack of a good 400,000 barrels per day of Forties oil, the leading oil type in the Brent basket. This should preclude any fall in the Brent price for the foreseeable future,” they added.
https://www.marketwatch.com/story/crude-oil-rises-to-1-week-high-on-signs-of-slower-us-drilling-activity-2017-12-18?dist=markets