Oil markets were firm on Monday and remained near multi-month highs
reached late last week as the number of U.S. rigs drilling for new
production fell and refineries continued to start up after getting
knocked out by Hurricane Harvey.
U.S. West Texas Intermediate (WTI) crude futures were at 50.0 dollars
per barrel at 0547 GMT, and close to the more than three-month high of
50.50 dollars reached last Thursday.
Brent crude futures, benchmark for oil prices outside the United
States, were at 55.71 dollars a barrel, up 9 cents and not far from the
almost five- month high of 55.99 dollars touched on Thursday. Brent was
56 dollars on Wednesday.
“Demand forecasts from OPEC and IEA… continued to improve sentiment
in the market. Refineries are also reporting a much better recovery from
the recent hurricanes,” ANZ bank said on Monday.
Royal Dutch Shell’s Deer Park refinery in Texas was among the latest,
beginning its restart on Sunday. The plant can process 325,700 barrels
per day.
The refinery restarts are occurring “as signs emerge of stalling
growth in the U.S. shale industry. The number of rigs drilling for oil
in the U.S. fell sharply last week,” ANZ said.
U.S. energy firms cut seven oil rigs in the week to Sept. 15,
bringing the total count down to 749, the fewest since June, energy
services company Baker Hughes said on Friday.(Reuters/NAN)