Oil prices fall

AFP, SINGAPORE: Oil prices dipped slightly during early Asian trading yesterday as fresh oversupply concerns spurred by an increase in operational US rigs bridled a recent rally.
This follows a week of gains that lifted US benchmark West Texas Intermediate (WTI) above $40 for the first time since December, buoyed by a sharp drop in the dollar and revived optimism that producers would strike a deal to freeze output.
At around 0600 GMT, WTI for delivery in April fell 56 cents (1.42 per cent) to $38.88. Brent for May dropped 30 cents to $40.90.
“The weekly rig count for the US reflected an increase for the first time after 12 weeks of cuts,” EY analyst Sanjeev Gupta said in a note.
The Baker Hughes weekly count of oil rigs operating in the United States rose by one after falling for more than two months running, while gas rigs dropped by five.
IG Markets market strategist Bernard Aw saw the price drop as a “knee-jerk reaction”, adding that it was still unclear if US production will increase.

Oil prices fall

AFP, SINGAPORE: Oil prices dipped slightly during early Asian trading yesterday as fresh oversupply concerns spurred by an increase in operational US rigs bridled a recent rally. This follows a week of gains that lifted US benchmark West Texas Intermediate (WTI) above $40 for the first time since December, buoyed by a sharp drop in the dollar and revived optimism that producers would strike a deal to freeze output. At around 0600 GMT, WTI for delivery in April fell 56 cents (1.42 per cent) to $38.88. Brent for May dropped 30 cents to $40.90. The weekly rig count for the US reflected an increase for the first time after 12 weeks of cuts, EY analyst Sanjeev Gupta said in a note. The Baker Hughes weekly count of oil rigs operating in the United States rose by one after falling for more than two months running, while gas rigs dropped by five. IG Markets market strategist Bernard Aw saw the price drop as a knee-jerk reaction, adding that it was still unclear if US production will increase.