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Crude Oil Gets Support from Range of Positive Factors

July 5, 2019 at 18:26 by Vladimir Vyun

Futures for Brent crude oil logged significant gains today. The West Texas Intermediate grade posted losses but has managed to rebound by now. There were several factors that helped the commodity.

Some analysts speculated that better-than-expected US nonfarm payrolls buoyed the commodity. While the report boosted the dollar, hurting commodities priced in the US currency, it sent a positive signal about economic growth, and that was helpful to crude.

Oil output from the Organization of Petroleum Exporting Countries dropped to the lowest level since 2014 as US sanctions against Iran and Venezuela helped to offset rising production in Saudi Arabia.

Baker Hughes reported that the US oil rig count decrease by 5 to 788 this week. Yet US oil production increased by almost 1.2 million barrels per day, year-on-year, despite the drop of oil rigs from 858 to 788, year-to-date. The number of gas rigs increased by 1 to 174 this week.

Futures for delivery of WTI crude oil advanced 0.37% to $57.55 per barrel as of 18:21 GMT on NYMEX today. September Brent crude jumped 1.61% to $64.32 per barrel on ICE. Futures for delivery of natural gas in August surged 6.51% to $2.44 per million British thermal units.

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