Oil prices rose early on Monday, but an increase in U.S. drilling activity stoked worries that a global supply glut will persist despite an OPEC-led effort to curb output.
As of 08:36am (MSK), Brent for August settlement gained as much as 0.98% to $46.22 per barrel on the London-based ICE Futures Europe exchange. WTI for August delivery climbed as much as 1.09% to $43.48 per barrel on the New York Mercantile Exchange.
“There is scope for oil markets to tighten over the rest of the year,” the global markets strategist for JPMorgan Asset Management Kerry Craig said in a Bloomberg television interview. “As those prices stay weak, certainly some of those companies start adjusting their outlook for capex and investment and that slowly actually does start to bring rebalance into the market.”
U.S. crude drillers added rigs for a 23rd straight week, the longest stretch in three decades, according to data Friday from Baker Hughes Inc.
