Oil Near ‘Sweet Spot’ Puts U.S. Rig Count Back in Focus: Chart

Oil Prices Will Head Back Down, Here's Why

Nine oil rigs returned to operation in the U.S. last week, the biggest gain since December and only the second addition this year, according to Baker Hughes Inc., raising concern that a production rebound may stifle crude’s recovery. Oil has surged from a 12-year low earlier this year, putting it within range of a “sweet spot” for shale output that Citigroup Inc. sees between $50 to $70 a barrel. Prices have gained amid disruptions to global supply and a slide in U.S. production, with 500,000 barrels a day cut from the market as the rig count fell to the lowest level since 2009.

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