Oil Prices inches on expectations of a tighter production restraints and a lower U.S. rig count

Oil plunges to $50

Oil prices were bullish in the session, stopping a 2 percent slide from last week, on expectations that Saudi Arabia would continue to restrain its output in order to support prices, and as the amount of oil rigs drilling for new oil in the United States dipped.

Oil ports, producers and refiners in Louisiana, Mississippi and Alabama, which shut facilities ahead of Hurricane Nate, were planning to reopen on Monday as the storm moved inland, away from most energy infrastructure on the U.S. Gulf Coast.

The U.S. West Texas Intermediate crude futures were trading at $49.48 per barrel which was up by 19 cents or an equal to 0.4 percent, from their previous close.

The international benchmark for oil, Brent Crude Futures were also up by 16 cents a 3 percent increase and was sold at $55.78 per barrel.
Oil tumbled by almost 2% on Friday, with WTI falling back below the 50% per barrel, as concerns of overproduction re-surfaced.

Analysts stated early today that Saudi Arabia’s commitment to support the market is by restraining output should help in preventing crude from falling further into the red zone.

State-owned oil giant Saudi Aramco is planning to flat around 5 percent of the firm in an initial public offering next year.

The Oil rigs in the U.S. fell by two and was at 748 in the week of Oct 6, General Electric Co’s Baker Hughes energy services firm said in its reports that was released on Friday.

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