Oil extends gains, Brent hits 8-week high

U.S. crude futures rose for a third straight session, while Brent hit an eight-week high above $62 a barrel after another drop in the U.S. rig count signaled the pressure producers face from low oil prices.

The number of oil drilling rigs in the United States fell to its lowest since August 2011, data showed on Friday.

Many traders and analysts believe there is a global oversupply of nearly two million barrels per day of crude oil. They say little has changed fundamentally to explain the price rebound of the past two weeks.

Libya’s El Sarir oil field is still unable to pump oil to Hariga port after sabotage on a pipeline just north of the field where repairs are ongoing, an oil official said on Sunday.

Production on a 240,000 barrels-per-day crude distillation unit at Exxon Mobil’s 344,600 barrels-per-day Beaumont, Texas, refinery has been reduced due to thinned piping, said sources familiar with operations at the plant.

China’s growth in broad money supply slumped to its lowest on record in January even as new yuan loans hit a 5-1/2-year high, boosting bets that Beijing may further loosen monetary policy to avert a sharper economic slowdown.

 Varchev Traders

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