Oil futures were lifted by a drop in U.S. drillings

Crude Oil

A heavy decline in the drilling activities at the United States has supported the price of oil on early Monday. Expectations that the country might impose another sanction against Iran has also weighed prices.

A General Electronics company Baker Hughes said in the previous week that drillers in the United States reduced about seven oil rigs in the week until March 29. This totals more than 797 rigs, a first time in three weeks that oil rigs drop. The firm released its North American rig count last Thursday, one day earlier due to the Easter holiday.

Looking at oil futures, U.S. West Texas Intermediate (WTI) crude prices rose as high as 0.4 percent or 24 cents to settle at $65.18 per barrel on the day. International benchmark for oil futures Brent crude jumped more than 0.5 percent or 33 cents to finish at $69.67 a barrel.

OANDA’s head of trading for Asia/Pacific Stephen Innes said that markets are still worried whether or not the Trump administration will maintain or scrap the agreement with Iran. He added that prices were lifted by the mentioned weekly report suggesting a decline in the drilling activities for fresh U.S. oil output.

Prices have been generally backed by the Organization of the Petroleum Exporting Countries (OPEC) and Russia’s deal that will trim production to reduced global oversupply. The agreement started January 2017 and will end this year.

In other news, the liquidity of trading in Europe will be low due to the Easter holiday.

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