Following last week's selloff, oil prices hit a two-week high on Thursday, after the EIA data showed that USA weekly crude oil production dropped to 9.250 million bpd in the week to June 23, from 9.350 million bpd the previous week.
Brent crude futures fell down 13 cents to touch at $48.64 a barrel, while U.S. crude futures dropped 4 cents to $46, reported Reuters.
The number of drilling rigs in the US dropped by 1 unit, or 0.1 percent, to 940 units as a result of the June 30 working week, according to energy services firm Baker Hughes Inc. A plunge in oil prices sent WTI and Brent, the global benchmark, into bear markets last week.
Investors came into this year optimistic, and indeed, US crude prices topped out near $55 a barrel in February in the wake of the deal struck by the Organization of the Petroleum Exporting Countries with other key producers to reduce supply by 1.8 million barrels per day (bpd) that began in January.
Much of that Canadian oil is already pouring into storage tanks in the U.S., rattling traders who last week pushed prices to a half-year low.
At 8:52am EDT on Thursday, WTI Crude was up 1.16 percent at US$45.26, while Brent Crude was trading up 1.18 percent at US$47.87.
Weekly August West Texas Intermediate Crude Oil
Oil fell 14 percent in the first half of 2017 due to a global supply glut that OPEC's historic deal with Russian Federation failed to alleviate.
The rig count drop follows a report Wednesday that U.S crude output fell by the most in nearly a year last week amid field maintenance in Alaska and tropical storm Cindy, while gasoline inventories fell for a second week.
Rising U.S. production has undermined some of the impact of the OPEC-led cuts.
US producers are expected to cut back on drilling due to lower cash flow from operations caused by the drop in prices. Most American refineries were set up to process heavy crude before the shale boom began, and have not changed since unconventional oil began to enter the market. The contract gained $1.11 to $46.04 on Friday to the highest since June 13.
"Al-Luaibi, who was asked if the Organization of the Petroleum Exporting Countries needed to deliver a more aggressive cut than the 1.8 million barrels per day it has agreed with 11 of its partners, was speaking at an event in London". Hedge funds are wary of undesirable exposures after the nine month OPEC oil freeze extension that would end in March 2018. As per our estimates, Opec's production edged higher by 0.5 mbpd in June to 32.7 mbpd, a six-month high as Libyan and Nigerian production increased.
Oil prices climbed for a seventh straight session on Friday, thanks to a weaker US dollar, in their longest bull run since April but were still set for the worst first-half performance since 1998.
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Mundell said last week that any funding for Northern Ireland should adhere to rules about funding for Wales and Scotland too. Mr Jones said: "Today's deal represents a straight bung to keep a weak Prime Minister and a faltering Government in office".