Oil prices stabilize after US cuts rig count

World oil prices showed signs of stabilizing on March 24, stemming losses after the US reduced the number of drilling rigs.

Illustration photo.

Oil prices have been steady in recent days after a long period of rising prices, but analysts say there could be a sell-off next week if US crude inventories hit record highs again.

Earlier, US crude oil prices fell 4% and Brent crude oil prices also fell below $40/barrel, extending the gloomy outlook since March 23 when the US government reported crude oil reserves three times higher than market expectations.

The US cut 15 oil rigs this week after pausing the previous week, according to the latest data released by oil services firm Baker Hughes. The current US oil rig count is 372, the lowest since November 2009.

Front-month crude CLc1 fell 33 cents to $39.46 a barrel, rebounding from $38.33 last week. The fuel rose 2 cents for the week, its sixth straight weekly gain.

Meanwhile, Brent crude LCOc1 fell 3 cents to $40.44 a barrel, after falling as low as $39.22 a barrel. For the week, Brent fell 76 cents, or nearly 2%, marking its first decline in six weeks.

Despite the fluctuations of the past week, oil prices are still about 50% higher than the record lows of January 2016. The decline in oil production and strong demand for gasoline are said to have a direct positive impact on current crude oil prices.

According to VOV