MTECHTIPS:-Crude holds weaker in Asia on climate change views, rig

MTECHTIPS:-Crude holds weaker in Asia on climate change views, rig count ahead

MTECHTIPS-Crude fell in Asia on Friday after President Donald Trump abandoned a 2015 pact between 195 nations to tackle climate change, creating potential turmoil in global energy policies and investors awaited further supply cues. On the New York Mercantile Exchange crude futures for June delivery slipped 0.54% to $48.10 a barrel, while on London’s Intercontinental Exchange, global benchmark Brent fell 0.51 to $50.37 a barrel. The latest weekly figures on the U.S. rig count are expected later on Friday. Data from energy services company Baker Hughes showed last week that U.S. drillers added rigs for the 19th week in a row, the second-longest such streak on record, implying that further gains in domestic production are ahead. The U.S. rig count rose by 2 to 722, extending an 11-month drilling recovery to the highest level since April 2015. Overnight, crude futures settled higher, after data on Thursday showed that supplies of U.S. crude fell more than expected and were down for the eighth consecutive week, easing concerns that rising US oil output would undermine OPEC and its allies’ efforts to curb supply. Crude futures soared to a high of $49.17 earlier in the session but came under pressure, as the bigger than expected draw in U.S. crude inventories was offset by an announcement from President Donald Trump that the U.S. is withdrawing from the 2015 Paris climate agreement. Inventories of US crude fell by roughly 6.4 m barrels in the week ended May 19, according to the Energy Information Administration. That confounded expectations of draw of around 2.5 m barrels.
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