An increase in drilling activity is expected to lead to higher shale production.
Benchmark Brent LCOc1 increased 40 cents to $77.51 per barrel, while the US crude CLc1 declined 30 cents and traded at $73.50, Reuters reported.
PVM Oil Associates analyst Stephen Brennock was quoted by the news agency as saying: “Uncertainties abound when it comes to the oil balance for the remainder of the year. Competing supply-side developments ensure that the oil price roller-coaster remains in full swing.”
Baker Hughes said in its report that last week, energy companies in the US increased the number of rigs drilling for oil by five to 863.
The rig count in the country is said to be much higher compared to the previous year as energy companies have increased production in response to higher prices.
This year, more production is required due to an increase in oil demand and fall in supply from Venezuela and Libya. This led to a tightening in the market, especially in the US.
According to data last week, crude oil inventories at Cushing, Oklahoma fell to their lowest in three and a half years.
Last month, the Organization of the Petroleum Exporting Countries and other countries agreed to a modest increase in output to dampen oil prices.
An increase in supply is set to reverse some of the production cuts that the oil cartel and other major producers put in place last year to end several years of glut.