Crude tumbles steeply in Asia ahead of American rig count figures

Crude tumbles steeply in Asia ahead of American rig count figures

On Friday, crude prices reversed course and declined steeply in Asia, with weekly rig count data supposed to set the overall tone along with nonfarm payrolls as a sign of broad economic health in the major American market.

In New York, June delivery crude futures dived 2.79%, being worth $44.25 a barrel, while in London, Brent futures dipped 2.50%, trading at $47.17 a barrel.

Thursday’s reports told that OPEC along with non-OPEC crude producers consider extending their agreement to restrict supplies beyond its June expiry to clear a glut, though understated the chances of extra steps such as a bigger drop in the face of a huge supply response from America to higher prices.

The American rig count added by 9 to 697, thus extending an 11-month drilling revival to the highest value since August 2015.

Overnight, crude futures slumped 5%, wiping out the revenues hit since OPEC as well as other producers agreed a deal to diminish output, as market participants’ worries as for the glut in crude stockpiles strengthened ahead of the OPEC gathering on May 25.

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