Oil rises on U.S. rig count; market also up on week and month

Fri Oct 30, 2015 6:37pm EDT
 
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By Barani Krishnan

NEW YORK (Reuters) - Oil prices rose on Friday, finishing higher for the week and month as well, after another decline in the U.S. oil rig count indicated domestic crude production could fall in coming months.

Prices also got a boost from separate data showing U.S. oil output in August fell to third lowest figure this year.

Brent, the global benchmark for oil, settled up 76 cents, or 1.6 percent, at $49.56 a barrel. It rose 3 percent on the week and 2 percent for October.

U.S. crude futures rose by 53 cents, or 1.1 percent, to $46.56, gaining 3 percent on the week and 4 percent on the month.

Oil prices had trended higher since Wednesday's 6 percent rally, sparked by a smaller-than-anticipated build in U.S. crude and sharper-than-expected falls in gasoline and diesel stockpiles.

U.S. oil drillers removed 16 rigs in the week ended Oct. 30, bringing the total rig count down to 578, the least since June 2010, oil services company Baker Hughes Inc said in its closely followed report.

The drop was a sign that low prices were continuing to keep drillers away from the well pad, signaling lower production over the next several months.

But while U.S. output is declining, global supplies of crude and refined oil products continue to grow, testing storage capacity and hammering oil company results.   Continued...

 
An employee changes a price sign at a petrol station in Hanoi, Vietnam September 3, 2015. REUTERS/Kham