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Crude Oil Falls Further Even as US Drillers Reduce Number of Oil Rigs

December 14, 2018 at 20:50 by Vladimir Vyun

Crude oil extended its previous losses today, heading to end the session with more than 2% decline. Prices continued to sink even as US drillers decreased the number of oil rigs for the second week in a row. Baker Hughes reported that the oil rig count fell by 4 this week. At 873, the number of rigs was the lowest since October but higher than a year ago. Energy firms were reducing the number of active rigs in a response to the collapse of oil prices last month.

Despite the news, the negative market sentiment continued to weigh on the commodity. Lackluster economic data in the eurozone and China led to concerns about global growth. And performance of crude usually directly linked to growth as growing economy means higher consumption of the commodity as a source of fuel and energy.

Contract for delivery of WTI crude oil in January slumped 2.7% to $51.16 per barrel as of 20:26 GMT on NYMEX today. February Brent crude dropped 2% to $60.22 per barrel on ICE.

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