Oil prices climb as U.S. equities rally, rig count drops - Reuters

Oil prices climb as U.S. equities rally, rig count drops - Reuters:

Oil prices edged higher on Wednesday ahead of a U.S. holiday, after falling steeply a day earlier as worries about a slowing global economy outweighed a decision by OPEC and allies to extend crude output cuts.

Strength in the U.S equities market and data showing U.S. energy firms this week reduced the number of oil rigs operating for the first time in three weeks helped support oil prices.

Each of the major U.S. stock indexes finished at a record closing high, as expectations grew that the Federal Reserve would take a more dovish turn as a raft of data provided more evidence of a slowing economy.

U.S. oil drillers cut five oil rigs in the week to July 3, bringing the total count down to 788, General Electric Co’s (GE.N) Baker Hughes energy services firm said in its closely followed report. Record U.S. crude production has pressured prices over the past year.

September Brent crude futures LCOc1 ended the session up $1.42, or 2.3%, at $63.82 a barrel. U.S. crude futures for August delivery CLc1 settled up $1.09, or 1.9%, at $57.34 a barrel.