Oil prices recover as equities steady on

Oil prices recovered slightly up by 1% in the international markets, after the last week’s steep losses as Asian Markets found a footing as the incumbent week started.

Brent crude futures were at $63.42 per barrel at 0250 GMT, up 63 cents, or 1 percent, from the previous close.

U.S. West Texas Intermediate (WTI) crude futures were at $59.83 a barrel. That was up 63 cents, or 1.1 percent, from their last settlement.

The prices registered an uptick after its biggest loss in two years last week as stock markets slumped. But with U.S. stock markets rebounding on Friday and Asian markets seemingly steadying on Monday, analysts said crude was also supported.

Surging U.S. shale production, along with broader financial turmoil, has clearly put an end to the bullish mood in the oil market. U.S. shale struck several blows against oil prices this week.

But oil markets still face soaring U.S. oil production, which has risen above 10 million barrels per day (bpd), overtaking top exporter Saudi Arabia and coming within reach of top producer Russia.

There is a strong indication that output will rise further.

U.S. energy companies added 26 oil rigs looking for new production this week, boosting the count to 791, the highest since April 2015, according to latest data released. The soaring U.S. output is undermining efforts led by OPEC and Russia to withhold production in order to push up prices.

Posted on: 2018-02-12T11:46:00+05:00