Oil prices bounced Monday as data suggested that U.S. crude output is dropping amid low prices.
Oil service company Baker Hughes reported Friday that the oil rigs dropped eight last week, bringing the total rig counts down to 644. U.S. crude production fell 18,000 barrels to 9.117 million barrels a day as the week ended Sept. 11, according to the Energy Information Administration (EIA)'s weekly report.
For that week, U.S. crude supplies of last week dropped 2.1 million barrels to 455.9 million barrels. Inventories at Cushing, Oklahoma, the delivery point for the U.S. contract lost 1.9 million barrels to 54.5 million barrels. Oil market also spiked as U.S. stock market went higher. U.S. stocks rebounded from heavy losses last Friday, as investors continued to digest the Federal Reserve's decision to keep interest rate unchanged.
The West Texas Intermediate for October delivery moved up 2 U.S. dollars to settle at 46.68 dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery increased 1.45 dollars to close at 48.92 dollars a barrel on the London ICE Future Exchange.
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