Oil prices drop amid rising US production, oil rig count

NEW YORK (Xinhua) – Oil prices fell on Friday, as the market was dampened by a surge in United States (US) crude oil output in April and increased US oil rig count this week.

US crude supply hit 12.162 million barrels per day (bpd) in April, a striking increase of 246,000 bpd from the previous month, according to a monthly report by the US Energy Information Administration on Friday.

Texas saw the largest crude production in the month, which rose 11,000 bpd to 4.967 million bpd. Offshore output in the US Gulf of Mexico came as the second largest, up 77,000 bpd to 1.982 million bpd.

On the other hand, the number of active US rigs drilling for oil increased by 4 to 793 for the week ending Friday, said US energy service firm Baker Hughes in its weekly report on Friday.

The reading followed a minor uptick of one rig of the previous week, yet was much lower than the 858 rigs of the same week last year.

The West Texas Intermediate for August delivery decreased USD0.96 to settle at USD58.47 a barrel on the New York Mercantile Exchange, while Brent crude for September delivery declined USD0.93 to close at USD64.74 a barrel on the London ICE Futures Exchange.

US crude supply hit 12.162 million barrels per day (bpd) in April, a striking increase of 246,000 bpd from the previous month. – AP