Markets

Oil resumes rally after briefly paring gains

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Investing.com - Oil prices rose on Monday to resume its longest period of daily gains in over five years, after briefly paring gains earlier in the day.

U.S. crude futures were at $46.61 a barrel by 10.25 AM ET (14.25 GMT), up 0.57 cents or 1.24% to its highest since June 14.

Brent crude futures on the ICE Futures Exchange in London were last at $49.31, up 0.53 cents or 1.09%.

Oil was on track to post an eight straight day of gains in what would be the longest unbroken rally in more than five years after data last week indicated that U.S. oil output is moderating.

Energy services firm Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil fell by two, the first decline in six months.

Despite the drop in drilling the total rig count was still more than double the 341 rigs in the same week a year ago, the firm said.

The report came after figures from the U.S. Energy Information Administration showing that output fell by 24,000 barrels per day in April, the first drop this year.

But oil markets remain oversupplied despite output cuts brokered by the Organization of the Petroleum Exporting Countries.

In May, OPEC and some non-OPEC producers extended a deal to cut 1.8 million barrels per day in supply until March 2018.

The cartel will not rush into making a further cut in oil output or end some countries' exemptions to output limits, OPEC delegates said last week, although a meeting in Russia next month is likely to consider further steps to support the market.

Elsewhere on Nymex, gasoline futures were up 1% to $1.533 a gallon, while August heating oil was up 1.61% to $1.507 a gallon.

Natural gas futures were last at $3.030 per million British thermal units.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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