Brent Slips to Lowest in a Month After U.S. Drilling Expands

Benchmark Brent fell to its lowest level since Jan. 8 as Baker Hughes data showed American explorers last week raised the number of rigs drilling for crude to the highest in almost six months. A global slump in equities deepened on Monday, removing another pillar of support for the oil market.

“The weaker opening was a combination of the risk-off sentiment that the stock market showed, but also the rig count which continues to rise,” says Ole Hansen, head of commodities strategy at Saxo Bank A/S. “It continues to confirm that U.S. producers are in good health and will increase production as prices go up.”

U.S. drillers last week added six rigs to raise the number of machines drilling for crude to 765, the highest since Aug. 11, Baker Hughes data showed Friday. That may lead to a further increase in U.S. crude production, which breached 10 million barrels a day to the highest level in more than four decades in November.
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