U.S. energy firms this week cut the number of oil rigs operating to the lowest in almost nine months as some producers follow through on plans to cut spending despite an over 20-percent increase crude futures so far this year.
Source: in.reuters.com
U.S. oil companies cut 10 oil rigs for the week to March 1, as per data released Friday by Baker Hughes. The rig count fell for a second week in a row and brings the total count to a nine-month low of 843. Some producers following through on plans to cut spending primarily led to the decline. Despite the positive news, U.S. crude futures fell from three-month highs to below $56 a barrel on Friday, as bearish U.S. manufacturing data stoked oil demand concerns. Although oil prices have gained nearly 20% so far this year spurred by OPEC cuts, further gains could be limited amid deteriorating global economic backdrop and a booming U.S. shale output.
