U.S. crude oil prices closed down 1.5 percent on Friday at $46.05 a barrel. According to Baker Hughes, U.S. oil rig count fell by 13 to 662 for the first time in six weeks. Around this time last year, the number of U.S. oil rigs was 1,584. This downtrend caused drillers to make cutbacks in production for the second time this summer.
Brent crude for October fell $2.30 at $50.40 a barrel. There is much pressure on oil prices, as oversupply seems to remain in the market for longer than expected. Barclays and BNP Paribas have lowered their Brent price forecasts for 2015 and 2016, a sign banks expect oil prices to stay low for longer. It is expected for Brent crude to reach approximately $55-56 a barrel by the end of this year.
As a result, there has been low volume and fewer positions added even after a jobs report was released, indicating lack of direction.
By: Samantha Eng