Oil Climbs as Falling U.S. Rig Count Seen Further Curbing Output
- U.S. rigs targeting oil fell by 8 last week: Baker Hughes
- WTI-Brent crude spread was narrowest since January last week
OPEC Speculates $80 Oil by 2020
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Oil advanced on signs that producers are investing less in drilling, which could take a bigger bite out of falling U.S. crude production.
Explorers idled oil rigs for a third straight week in the U.S., Baker Hughes Inc. said Friday. U.S. crude output has fallen for six weeks as the price slump over the past year takes its toll on the shale-oil industry. About $1.5 trillion of potential investment in new oil projects isn’t viable with prices at $50 a barrel, according to consultant Wood Mackenzie Ltd.