On Monday, crude prices surged, though the revenues were limited as market participants gauged whether a soar in American drilling rigs as well as record stockpiles would undermine efforts by producers to reduce output and bring the market into balance.
Brent futures LCOc1 surged 17 cents, trading at $55.98 a barrel, while American West Texas Intermediate crude CLc1 gained 15 cents, showing $53.55. Earlier, both contracts dived moderately in quiet trading.
American energy companies added crude rigs for a fifth consecutive week, as Baker Hughes informed on Friday, thus extending a nine-month revival with producers encouraged by higher prices.
Assuming that the crude rig count stays at the current level, experts suggest that American crude output would soar by 405,000 bpd between 4Q17 and 4Q16 across the Permian.
Overall, 2017 American output will ascend by an average 130,000 bpd from last year.
