Oil prices dip on rising U.S. rig count

  • Reuters
  • Commodities News
Oil prices dip on rising U.S. rig count
Credit: © Reuters.

* U.S. rig count rises to 854 -Baker Hughes

* Rosneft pressures Putin to end supply cuts with OPEC

* But U.S. sanctions against Venezuela support crude prices

* U.S. oil drilling & production levels: https://tmsnrt.rs/2S87iVI

By Henning Gloystein

SINGAPORE, Feb 11 (Reuters) - Crude prices dipped early on Monday in Asia as U.S. drilling activity picked up and as Russia's biggest oil producer pressured President Vladimir Putin to end the supply cut deal with Middle East-dominated producer club OPEC.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $52.44 per barrel at 0036 GMT, down 28 cents, or 0.5 percent, from their last settlement.

International Brent crude oil futures LCOc1 were down 10 cents, or 0.2 percent, at $62 a barrel.

In the United States, energy firms last week increased the number of oil rigs operating for the second time in three weeks, a weekly report by Baker Hughes said on Friday. added 7 oil rigs in the week to Feb. 8, bringing the total count to 854, pointing to a further rise in U.S. crude production, which already stands at a record 11.9 million barrels per day (bpd). C-OUT-T-EIA

Elsewhere, the head of Russian oil giant Rosneft ROSN.MM , Igor Sechin, has written to the Russian President Vladimir Putin saying Moscow's deal with the Organization of the Petroleum Exporting Countries (OPEC) to withhold output is a strategic threat and plays into the hands of the United States.

The so-called OPEC+ deal has been in place since 2017, aimed at reining in a global supply overhang. It has been extended several times and, under the latest deal, participants are cutting output by 1.2 million bpd until the end of June.

OPEC and its allies will meet on April 17-18 in Vienna to review the pact.

Preventing crude prices from falling much further have been U.S. sanctions on Venezuela, targetting its state-owned oil firm PDVSA. issues in Venezuela continue to support prices. Reports are emerging that PDVSA is scrambling to secure new markets for its crude, after the U.S. placed additional sanctions on the country," ANZ bank said on Monday.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC: U.S. oil production & drilling levels



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