Oil prices gained Monday amid shrinking crude output. Last week U.S. oil rig count fell for the eighth straight week.
According to data released last Friday by oil service company Baker Hughes, the number of U.S. oil rigs in use fell by 10 to 318. Crude production of U.S. decreased 23,000 to 8.802 million barrels a day the week ended May 6, according to the Energy Information Administration (EIA)'s weekly report released last Wednesday.
Investment bank Goldman Sachs said in a report released Monday that the oil market has gone from nearing storage saturation to being in deficit much earlier than the company expected. The West Texas Intermediate for June delivery moved up 1.51 U.S. dollars to settle at 47.72 dollars a barrel on the New York Mercantile Exchange, while Brent crude for July delivery increased 1.14 dollars to close at 48.97 dollars a barrel on the London ICE Futures Exchange.
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