Oil Extends Losses as U.S. Rigs Drilling for Crude Rise 2nd Week

Crude fell a third day after the number of rigs drilling for oil in the U.S. rose for a second week.

Futures fell as much as 1.8 percent in New York after dropping 4.2 percent in the previous two sessions. Rigs targeting crude in the U.S. rose by 3 to 328 last week, capping the longest run of weekly gains since August, Baker Hughes Inc. said Friday. Iran is seeking to boost output by 600,000 to 700,000 barrels a day over five years from fields in an area west of the Karoun River along the Iraqi border, Oil Minister Bijan Namdar Zanganeh said.

Oil has surged about 85 percent from a 12-year low in February as the global glut is trimmed by disruptions and a slide in U.S. output, which is under pressure from the Organization of Petroleum Exporting Countries’ policy of pumping without limits. New York crude closed above $51 a barrel on Wednesday at the highest level in more than 10 months.

Bloomberg

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