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Oil Recovers Despite Increased Number of Active Rigs in U.S.

Oil prices grew on Monday on the back of news that both the U.S. and China were preparing for a phase one trade agreement. The additional support was fresh upbeat China data. 

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Brent crude oil futures added 0.14 percent, to $65,31 per barrel, while U.S. light crude WTI futures for delivery in January rose by 0.12 percent, to $60.05 per barrel at 8.46 GMT.   

Meantime, Friday’s report showed, that U.S. energy companies increased number of oil rigs for the first time in eight weeks, despite the fact production was slowing down due to lower costs. The number of rigs in U.S. increased by 4 rigs, in the week, which ended on December 13to touch 667, comparing with 873 rigs at the same time a year earlier, following oil service company Baker Hughes report on Friday.

The number of active rigs is the most significant indicator of future U.S. production, has been declining over the past five months, as independent exploration and production companies are cutting costs for drilling new wells by focusing on profit growth rather than increase production.