Crude oil futures moved higher on Friday, rebounding from early losses, after a report from Baker Hughes said the oil rig count dropped for a third straight week.
Recent data showing a drop in U.S. crude stockpiles played a role as well in pulling oil prices up from lower levels.
Prices had moved lower earlier in the session due to concerns about near-term energy demand outlook.
West Texas Intermediate Crude oil futures for October ended up $0.22, or about 0.4%, at $56.52 a barrel, recovering after early weakness.
On Thursday, WTI crude oil futures for October settled flat at $56.30 a barrel.
Oil futures gained 2.6% in the week, moving higher for a second straight week.
Data released by Baker Hughes today said the oil rig count in the U.S. dropped by 4 to 738 this week. With this, the rig count has dropped for three straight weeks.
Oil was also supported by comments from the Federal Reserve Chairman Jerome Powell who said the economy remained strong and that the central bank would “act appropriate” to support economic expansion.
The weekly oil report released by the Energy Information Administration on Thursday showed crude inventories in the U.S. fell by 4.8 million barrels in the week ended August 30, nearly twice the expected drop.
The material has been provided by InstaForex Company – www.instaforex.com