Crude Oil Tumbles As Rig Count Drops

Crude Oil Tumbles As Rig Count Drops

Crude oil futures fell Friday, but held onto weekly gains as industry data showed the U.S. oil rig count dropped for a third week in four.

The number of U.S. oil drilling rigs declined by 3 to 756, Baker Hughes said.

Additional rigs may come offline in the coming weeks, as a fifth of U.S. refineries were closed due to Hurricane Harvey.

Two more hurricanes are on the way, suggesting a busy hurricane season in the Gulf of Mexico.

U.S. West Texas Intermediate light crude oil was 2.04 percent, or $1, lower at $48.09 a barrel.

In economic news, U.S. wholesale inventories rose by more than anticipated in the month of July.

The Commerce Department said wholesale inventories climbed by 0.6 percent in July, matching the downwardly revised increase in June.

Economists had expected inventories to rise by 0.4 percent compared to the 0.7 percent increase originally reported for the previous month.

SOURCE

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