Oil Extends Gains on Lower U.S. Rig Count, Chinese Stimulus 

Oil prices rose today, extending last week’s gains as a drop in the number of U.S. rigs drilling for crude pointed to lower supply later in the year, while China’s latest stimulus measure also underpinned the market. U.S. oil drilling rigs fell for a record 19th straight week to the lowest since 2010, data from Baker Hughes showed.
While the drop slowed, suggesting the collapse in drilling could be coming to an end, Schlumberger Ltd (SLB.N), the world’s largest oilfield services company, said an eventual recovery in U.S. oil drilling activity may never reach last year’s frenzied pace. China’s central bank cut the amount of cash that banks must hold as reserves on Sunday, the second industry-wide cut in two months, adding liquidity to bolster the economy. Brent crude CLOc1 was up 70 cents at $64.15 a barrel by 0532 GMT. It settled lower on Friday but finished the week 9.6 percent higher, its biggest weekly gain in more than five years.

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