Crude oil prices rose at the beginning of the week after hitting a seven-week low on Friday, as prices recovered to offset some of last week’s sharp losses, despite a U.S. oil rigs count report from the United States showing a rise to a record high.
US crude futures rose 2.3% to trade at $60.42 a barrel, after opening at $ 59.12 a barrel. Crude prices fell on Friday to a seven-week low of $58.06 a barrel.
Brent crude also rose for the first time four sessions to hover near $63.69 a barrel, where it opened at $62.63.
The recovery in crude oil prices comes in a quiet trading session in the absence of economic data and holiday in the Japanese markets, which helped Asian stock indexes to move moderately after the strong decline suffered last week, noting that crude oil is deemed a risky investment.
The number of oil rigs operating in the U.S. during the last week surged to the highest level in more than a year ago, edging up by 26 rigs to total number to 791, reporting a rise for the third week in a row.
Drilling data reflected the rise in US crude oil production, which hit its highest level since 1970 at 10.25 million barrels a day in November, surpassing production of Saudi Arabia and Russia.
It is worth mentioning that crude oil prices have ignored the impact of this report at the beginning of trading week, because of the desire of markets to recover after two weeks of decline, especially with the dollar's weak movement during trading today.
The dollar index inched down to 90.10 after touching a two-week high at 90.44 last week.
Oil prices recorded their biggest weekly tumble in 10 months last week, as the rise in U.S. crude production outweighed efforts by OPEC to balance supply and demand in the energy market.
Iran, a large OPEC producer, announced plans to boost its output within the next four years by at least 700,000 barrels a day.
crude stockpiles probably edged up 0.28 million barrels in the week ended
February 9, the EIA government report may show this week.