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Oil Prices Rise on Lower Drilling Activity, Key Meetings Ahead

Published 10/09/2018, 15:54
Updated 10/09/2018, 16:11
© Reuters.  Oil heads higher as U.S. drilling drops, focus on upcoming meetings.
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Investing.com - Crude prices rose on Monday after data showed a decrease in U.S. drilling activity and market participants looked ahead to key meetings.

New York-traded West Texas Intermediate crude futures gained 31 cents, or 0.46%, at $68.06 a barrel by 10:50 AM ET (14:50 GMT).

Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., rose 55 cents, or 0.72%, to $77.38.

U.S. drillers cut out two rigs last week, bringing the total to 860, according to energy services company Baker Hughes. The rig count in the U.S. has stayed around 860 active drillers since May.

In key meetings focused on global production, U.S. Energy Secretary Rick Perry will meet Saudi Energy Minister Khalid al-Falih on Monday in Washington, the Department of Energy said, as the Trump administration encourages big oil-producing countries to keep output high ahead of Washington’s renewed sanctions on Iran's crude exports.

Perry will also meet with Russian Energy Minister Alexander Novak on Thursday in Moscow, a U.S. source and a diplomatic source told Reuters on Sunday night.

Meanwhile, the Joint Technical Committee -- composed of representatives from the Organization of Petroleum Exporting Countries and non-OPEC major producers led by Russia -- is expected to meet on Sept. 17 to consider proposals on distributing the agreed output increase of 1 million barrels per day.

OPEC, Russia and other non-members agreed in June to return to 100% compliance with oil output cuts that began in January 2017, after underproduction by some had pushed compliance above 160%.

According to the sources cited, there are four proposals on the table that will be discussed before being presented to ministers attending the next monitoring meeting on Sept. 23 in Algeria.

In other energy trading, gasoline futures inched up 0.05% to $1.9765 a gallon by 10:53 AM ET (14:53 GMT), while heating oil advanced 0.20% to $2.2226 a gallon.

Lastly, natural gas futures edged down 0.11% to $2.773 per million British thermal units.

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