Crude oil prices have suffered a slight increase this morning, following reports of renewed talks by members of the Organisation of Petroleum Exporting Countries (OPEC) to limit oil production.
According to media sources, there have been some calls by the members of the Organisation to freeze output amid rising demand.
However, some analysts are saying that this attempt by OPEC is “doomed to fail” as members are expected to continue to increase their oil exports.
Crude Oil Prices Rise on OPEC Talks
Overall, US West Texas Intermediate crude futures went up by 0.5% to $42.01, while Brent crude futures went up by 0.29% to $44.
Other factors which may have had an impact include Iraq’s decision to decrease its selling price for Basra Light crude to Asia, as well as the US’ rising rig count, reaching a peak since March 2015.
As far as demand is concerned, oil demand growth is expected to slow down by the end of the year and even further in 2017.
Crude prices had seen a downfall on Friday, following a temporary high after data showed that the US economy had created 255,000 new jobs in July.
US Oil Rig Count on the Rise
In the US, drillers are planning to resume work with a rising number of rigs this year, mostly in the Permian Basin of Texas and the natural gas-rich Marcellus Shale field.
This shows a trend across the US whereby companies are trying to maximise productivity as much as their can to beat the price crash.
Overall, the US oil rig count has risen over nine of the last ten weeks, by 35 rigs to a total of 177 rigs.
According to a Baker Hughes report, the number of active oil rigs in the US rose to 381 this week, from a total of 374.
The figure still remains low compared to a year ago, but the recent rise has given rise to concerns about a global glut.