2017.12.0403:47:00UTC+00Oil Prices Edge Down as U.S. Rig Number Rises

Prices of oil declined on Monday after U.S. shale drillers established new rigs in the previous week, but prices remained near their highest level since mid-2015, aided by an extension of production cuts agreed last week by OPEC and other producer countries.

Data from baker Hughes showed U.S. drillers added two oil rigs in the week to December 1, bringing the total number up to 749, the highest since September.

U.S. WTI traded down 46 cents or 0.8 percent at $57.90 per barrel. Meanwhile, Brent futures traded down 39 cents or 0.6 percent at $63.34 per barrel.

The U.S. rig count, considered as a preliminary indicator of future production, increasing significantly from 477 rigs active a year prior after energy firms bolstered capex plans for 2017.

Over 2017, drillers were motivated to bolster activity as crude prices began recovering from a multi-year price slump around the same time OPEC along with other producers including Russia, agreed to limit production a year prior. Last week, the producers reached a consensus to prolong those cuts of 1.8 million bpd until the end of 2018.