MTECHTIPS:-Crude points higher in early Asia as London attacks
MTECHTIPS:-Crude points higher in early Asia as London attacks weigh on risk
MTECHTIPS – Crude prices pointed north on Monday in Asia as markets digested the weekend attacks in London that killed at least seven and raised risk sentiment. The U.S. West Texas Intermediate crude July contract was quoted up 0.13% to $47.72, while on the ICE Futures Exchange in London, Brent oil for August delivery was last quoted at $49.95 a barrel. Last week, oil futures settled at the lowest level in more than three weeks on Friday, with prices suffering their largest weekly loss in a month amid growing concern over rising shale production in the U.S. Concerns that the ongoing rebound in U.S. shale production could derail efforts by other major producers to re balance global oil supply and demand pressured crude prices. Data from energy services company Baker Hughes showed on Friday that U.S. drillers last week added rigs for the 20th week in a row, the longest such streak on record, implying that further gains in domestic production are ahead. The U.S. rig count rose by 11 to 733, extending a year-long drilling recovery to the highest level since April 2015. President Donald Trump’s controversial decision to withdraw from the 2015 Paris climate agreement on Thursday sparked additional concerns that U.S. oil production could expand rapidly in the absence of a stringent focus on curbing the use of fossil fuels. The Paris Agreement laid out a framework for countries to adopt clean energy and phase out fossil fuels such as oil, coal and natural gas.= The increase in U.S. drilling activity and shale production has mostly offset efforts by OPEC and other producers to cut output in a move to prop up the market.
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