WASHINGTON (dpa-AFX) - Crude oil futures pared most of their intraday gains and settled just modestly higher on Friday as traders weighed global crude supply position and the prospects for fresh incentives from the U.S. government to boost economic growth.
Oil prices rose sharply early on in the session, rebounding from recent losses amid hopes the U.S. government would pass a coronavirus economic aid package.
Reports that U.S. energy companies are planning to cut investment and drilling plans helped as well in pushing up prices.
West Texas Intermediate crude oil futures for April ended up $0.23, or about 0.7%, at $31.73 a barrel, after rising to a high of $33.87 in the session.
On Thursday, WTI crude oil futures tumbled 4.5% to $31.50 a barrel, after having shed about 4% a session earlier.
Crude oil futures lost more than 22% in the week, the biggest weekly loss in more than 11 years.
According to a report from Baker Hughes, oil drilling rig count in the U.S. rose for a second week in a row despite a massive drop in both oil and natural gas prices this week, despite forecasts from analysts that the number of rigs will fall as producers deepen their spending cuts on new drilling.
The report said companies added one oil rig in the week to March 13, bringing the total count to 683, their highest since December.
Oil futures failed to sustain gains due to expectations that energy demand will drop significantly for at least a short duration due to the coronavirus spread and due to the decision of Russia and Saudi Arabia to increase crude production.
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