Monday showed a rise of 1 percent on the price of oil, a result of a slowdown in the pace of drilling. One report stated that as much as $1.5 trillion worth of planned oil production was a poor economic choice in light of the current price of oil.
The past year has shown a deep cut in the value of oil, by about half. Huge increases in global oil production combined with slowing demand has finally been felt at the drilling level, especially in the US. For the past three weeks in a row drillers have cut the number of rigs working, causing prices to rise a bit.
The global benchmark Brent crude was up by 70 cents to sell at $48.17 per barrel by 1020 GMT. US crude was up by the same amount, reaching $45.38 per barrel.
“The fall in rig counts (is) supporting an otherwise bearish market,” said Tamas Varga, oil analyst at London brokerage PVM Oil Associates.
Sorry, comments are closed for this post.