Oil prices attracted bears again after a weekly update on rising drilling activity in the US. Energy services firm Baker Hughes reported on Friday that the number of drilling rigs had been increasing for 9th week in a row. US drillers added 14 oil rigs last week bringing the total count up to 631. It suggests a further ovesupply in US oil inventories. West Texas Intermediate shed almost 1% on Friday and is trading today at $48.42 a barrel. Brent Crude was also pushed down by the news. Today, Benchmark Brent Futures are trading at $51.47 a barrel. Importantly, crude oil is trading under pressure despite weakness in the US dollar.
The US dollar index is going on with a downward trend and trading today at 100.06. Investors are spooked with a rift between finance ministers of the biggest global economies at the G20 summit. This weekend, financial leaders of the world's leading economies dropped a pledge to keep global trade free and open. So the 2-day meeting failed to yield a compromise. The lack of agreement dealt a blow to the US dollar. However, upward correction is quite probable this trading this week. US Fed Chair Janet Yellen will give a speech at a conference in Washington on Thursday. Investors still hope to find some clues about further rate hikes.