Oil Climbs a Second Day as U.S. Drilling Slumps to Five-Year Low
- Number of active oil rigs declined by 26 to 614 last week
- Saudi Arabia lowers November pricing for buyers in U.S., Asia
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Oil advanced a second day after the number of rigs drilling in the U.S. slumped to a five-year low, continuing a slowdown in crude production that promises to reduce a global glut.
West Texas Intermediate futures climbed 1.6 percent, adding to Friday’s 1.8 percent gain. The number of active rigs fell to 614 last week, according to data from oilfield-services company Baker Hughes Inc. U.S. crude output was down 514,000 barrels a day from a four-decade high of 9.61 million in June, government data show. Crude also rose as equities rallied amid speculation the Federal Reserve will keep interest rates lower for longer.