Oil prices firm on signs of U.S. production slowdown

Reuters

Warning: This material has been prepared by a third party company, Reuters, which is independent of Davy. Davy has not reviewed the material and accepts no responsibility for errors or omissions, or for the information or opinions contained therein. It does not constitute investment advice.

By Henning Gloystein SINGAPORE, July 17 (Reuters) - Oil prices firmed on Monday, supported by a slowdown in new rigs looking for crude and a perception of strong demand. Brent crude futures LCOc1 , the international benchmark for oil prices, were at $49.08 per barrel at 0126 GMT, up 17 cents, or 0.35 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $46.70 per barrel, up 16 cents, or 0.34 percent. Both crudes extended gains from a strong previous week. urn:newsml:reuters.com:*:nL4N1K51WP Traders and analysts said the rising prices were a result of strong demand as well as signs that a relentless climb in U.S. oil production was slowing down. "Last week's strong draw on U.S. oil inventories was supported by comments from the IEA that demand is growing stronger than they had initially estimated ... The relentless climb in drill rigs operating in the U.S. also subsided," ANZ bank said on Monday. U.S. drillers added two oil rigs in the week to July 14, bringing the total count up to 765, energy services firm Baker Hughes BHGE.N said on Friday. RIG-OL-USA-BHI While that is the highest level since April 2015, the rate of those additions has slowed. Rig additions over the past four weeks averaged five, the lowest since November 2016. "Given the usual time lag between price signal and drilling decision, the coming month, which also features the E&P (exploration and production) earning season, will be key," said U.S. bank Goldman Sachs. (Reporting by Henning Gloystein; Editing by Joseph Radford) ((henning.gloystein@thomsonreuters.com; +65 6870 3263; Reuters Messaging: henning.gloystein.thomsonreuters.com@reuters.net)) Keywords: GLOBAL OIL/

Warning: This content may be provided by regulated and unregulated entities and is not created, reviewed or endorsed by Davy. It is provided for general information purposes only and does not constitute a recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Importantly, it does not constitute investment advice, as it does not contemplate the personal circumstances of any particular person or group of persons. Neither Davy nor the providers of the Third Party Content will be liable for any investment decision made based on the reliance on or use of such data, or any liability that may arise due to delays or interruptions in the delivery of the Third Party Content for any reason.