Rig Count Increases in Permian Basin as Oil Prices Ascend
Oil edged lower on Monday on signs that a multi-week rally was encouraging a rejuvenation in already bloated U.S. shale supplies, even as the government expected less output in June from the fastest-growing fields.
Last week, U.S. crude prices gained on a weekly basis for an eighth straight week while Brent had its decline after four weeks of gains.
In a sign that the market was responding to those price gains, rigs for drilling oil in the voluminous Permian shale basin rose last week for the first time this year after months of cutbacks.
Still, the U.S. Energy Information Administration expects output from the fastest-growing U.S. shale plays to drop 71,000 barrels per day in June to 4.97 million bpd.Click here to continue reading.
"It's pretty choppy as people try to figure out a clearer supply-demand situation," said Gene McGillian, senior analyst at Tradition Energy in Stamford, Connecticut.
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