Oil prices stable due to fall in US rig count


Oil prices have remained steady due to fall in US rig count and on increasing expectations that Saudi Arabia would continue to curb its output.

Brent crude futures remained unchanged at $55.62 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 9 cents to $49.38 per barrel, reported Reuters.

Last week, oil prices witnessed a sharp fall after growing concerns of oversupply, which was lessened by a fall in the number of oil rigs in the US drilling for new production.

Energy services firm Baker Hughes reported that rig count in the country decreased by two to 748 last week.

"I don’t think Nate will have much of an impact on production."

The US Commodity Futures Trading Commission stated that money managers increased strong bets on US crude futures for the consecutive third week, indicating positive market sentiment.

Most oil producers, refiners and ports located in Louisiana, Mississippi, and Alabama are expected to resume operations after closing ahead of the impact of Hurricane Nate.

Nate has now moved inland away from the key energy infrastructure on the US Gulf Coast, with the impact expected to be lower than hurricanes that struck the region last month.

Freight Investor Services fuel broker Matt Stanley was quoted by the news agency as saying: "I don’t think this one (Nate) will have much of an impact on production...What will be impacted though is the refining sector."