Crude Oil Price Rises by $1

CBC News reported that the price of crude oil rose as investors focused on the falling US rig count. It points to lower production down the line.

As quoted in the market news:

At 6:49 a.m. ET Brent crude futures were up $2.05 at $55.04 a barrel, after leaping as high as $55.62 and dipping as low as $51.41, as the bulls battled with the bears.

U.S. crude was up $1.50 at $49.74 a barrel, after touching an intraday high of $50.56 and slumping to $46.67.

Bjarne Schieldrop, chief commodity analyst at SEB, stated:

There were a lot of people on the sidelines waiting for an opportunity to buy.

Brent has struggled sideways for a long time but it closed above the 20-day moving average on Friday for the first time since July, and the rig count is falling sharply. So now they think, maybe this is the time to buy.

Click here for the full CBC News report