Oil Snaps 3-Day Rally as U.S. Rigs Climb for First Time in 2019 - Bloomberg

Oil Snaps 3-Day Rally as U.S. Rigs Climb for First Time in 2019 - Bloomberg:

Oil fell to near $53 a barrel as America’s rig count rose for the first time this year, signaling further increases in the nation’s crude production, while Venezuela’s rival leaders jockeyed for control of the military.

Futures in New York dropped as much as 1.6 percent after climbing 2.1 percent over the previous three sessions. The number of rigs targeting oil rose by 10 to 862, data from oilfield-services provider Baker Hughes showed, as this year’s rising crude prices buoyed optimism. Venezuela abandoned its decision to sever diplomatic ties with the U.S., while President Nicolas Maduro and National Assembly leader Juan Guaido sought the backing of the country’s armed forces.

Oil has advanced 17 percent in 2019 as the Organization of Petroleum Exporting Countries and its allies began cutting production to ease concerns over a supply glut, although record U.S. production, rising stockpiles and the trade war are capping gains. A deepening crisis in Venezuela had a small upward impact on prices last week, and the prospect of U.S. sanctions on the nation is also threatening to make it more challenging for OPEC to manage markets.