Fuel_Pumps

Crude oil prices has fallen more than 1% on oversupply concerns following a rise in the US rig total.

Brent crude’s front-month contract LCOc1 edged down 61 cents and traded at $40.59, while the US crude CLc1 fell 80 cents to $38.64 a barrel, Reuters reported.

Data released by Baker Hughes found that last week, oil and gas companies in the US added one rig after 12 weeks of cuts.

"The rebound in crude oil prices in the last month appears to have stabilised the number of rigs at work in the US shale sector."

The addition highlighted the decline in crude drilling stabilising after a 50% price rally since last month.

Baker Hughes reported a rise in the number of active US oil drilling rigs by one to 387.

ANZ told the news agency: "The rebound in crude oil prices in the last month appears to have stabilised the number of rigs at work in the US shale sector."

In the last two months, oil prices dropped after a proposal was made by the Organization of the Petroleum Exporting Countries (OPEC) to freeze output at January levels.

According to a survey, the average price of a gallon of US gasoline gained nearly 25 cents during the past four weeks.


Image: The US crude fell 80 cents to $38.64 a barrel. Photo: courtesy of Anusorn P nachol/ FreeDigitalPhotos.net.