Brent oil is trading at $63.50 Monday following a cautious opening amid ongoing tensions in the Middle East and after a rising rig count in the US suggested producers there are preparing to increase output.
US energy companies added the most oil drilling rigs in week since June as crude prices traded up to their highest levels since the summer of 2015.
Drillers added nine oil rigs in the week to November 10, bringing the total count up to 738, General Electric Co’s Baker Hughes energy services firm said in its closely followed report on Friday.
Reports said Saudi Arabia’s efforts to reduce a worldwide crude supply glut by cutting shipments to the US means others are now filling in, most notably Iraq, in a trend that is set to accelerate in coming months.
Over the summer, normally one of the busiest periods for crude shipments, US imports of crude from Iraq rose by 41% from a year ago, while similar shipments from Saudi Arabia have dropped by 22%.
Meantime, Iraq has raised the December official selling prices (OSPs) for its crude oil sales to Asia and Europe, but trimmed the Basra Light crude price for the US after demand slowed.
The December Basra Light OSP to the North and South American markets was set at the Argus Sour Crude Index (ASCI) plus 20c/bbl, down 15c from the previous month, the State Oil Marketing Organization said.
