Oil prices fall with rising number of US rigs and fire at Illinois refinery

By Henning Gloystein

SINGAPORE (Reuters) – Oil prices tumbled more than 1 percent on Monday as a result of resumption of drilling activity in the United States and the fire of a refinery in the United States. State of Illinois in the United States, which resulted in the closure of a large crude distillation unit.

The WTI (West Texas Intermediate) futures price was $ 51.92 per barrel at 0144 GMT, down 80 cents (1.5%) from their latest settlement.

Brent international futures fell 71 cents, or 1.1%, to $ 61.39 a barrel.

In the United States, energy companies have increased the number of oil rigs in operation for the second time in three weeks, a weekly report from Baker Hughes said Friday.

The companies added 7 oil rigs on February 8, bringing the total to 854, indicating a further increase in US crude oil production, which is already at a record 11.9 million bpd.

WTI prices were also weighed down by the closure of a 120,000 barrel per day (bpd) crude oil distillation unit (CDU) at the Phillips 66 refinery in Wood River, Illinois. , as a result of a fire.

For a graph on oil production and drilling levels in the United States, see – https://tmsnrt.rs/2Tm4u4I

Elsewhere, the head of Russian oil giant Rosneft, Igor Sechin, wrote to Russian President Vladimir Putin that the agreement between Moscow and the Organization of the Petroleum Exporting Countries (OPEC) to withhold production was a strategic threat and was playing in the hands of the United States. States.

The so-called OPEC + agreement has been in place since 2017 and aims to limit a global oversupply. It has been extended several times and under the last agreement, participants reduce their production from 1.2 million bpd until the end of June.

OPEC and its allies will meet in Vienna on 17 and 18 April to discuss the pact.

The United States has imposed sanctions on Venezuela, mainly targeting the state-owned oil company PDVSA, to prevent crude prices from falling further.

"The problems in Venezuela continue to support prices." Reports are becoming clear, as PDVSA is striving to secure new markets for its crude after the United States has imposed additional sanctions on the United States. country, "ANZ bank said on Monday.

(Report by Henning Gloystein, edited by Joseph Radford)