Brent Crude and WTI oil prices slip for second day as US ups rig count

 
Francesca Washtell
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The US added one oil rig to its count, according to data from Baker Hughes (Source: Getty)

Oil prices have fallen for the second working day after the US rig count rose, renewing concerns of a global supply glut.

Last week, US energy firms added one oil rig in the first addition since December following 12 weeks of cuts, according to oil services firm Baker Hughes.

Brent crude, the global benchmark, fell 0.8 per cent to $41.20 per barrel this morning, after hitting a high of $42.54 in the last session.

Last Thursday, oil prices were extending gains after firmer news of a meeting to discuss freezing output at January levels between the world's biggest suppliers. However, on Friday prices slipped over one per cent after rising to comfortably over $42 per barrel earlier in the session.

Meanwhile, West Texas Intermediate crude, the US benchmark, slumped almost two per cent to $39.44 per barrel.

"The rebound in crude oil prices in the last month appears to have stabilised the number of rigs at work in the US shale sector," ANZ said in a note to clients.

"After falling for six consecutive months, Baker Hughes data showed US oil rig counts increased by one to 387."

Brent crude prices have fallen from $115 per barrel in mid-2014 to $41, piling pressure onto oil producing nations' public finances.

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