12th October 2015
Oil was trading close to its best level since July at the start of the week, as signs the recent production glut could be coming to an end boosted prices.
US light crude for November delivery hovered around $50 a barrel, having flirted with the $51 handle on Friday.
Crude rallied after a report from research group Baker Hughes showed the number of rigs actively drilling for oil in the US fell by nine last week to 605, the lowest since July 2010.
Meanwhile, Kuwait’s oil minister has suggested that high cost production may be coming off stream as low prices bite.
Ali al-Omair told Reuters that “a lot of high-cost oil production is starting to get out of the market”, which would help bolster prices.
US oil has rallied strongly in the last month or so after hitting a low of just above $38 a barrel in August.
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