1st LD Writethru: Crude prices extend rally amid signs of slowing production
Xinhua, February 3, 2015 Adjust font size:
Oil prices continued to rise Monday as traders expected that low prices will slow the production.
The markets were supported by announcements of oil companies that they plan to cut investment amid lower crude prices.
Exxon Mobil announced estimated full-year 2014 earnings of 32.5 billion U.S. dollars, versus 32.6 billion a year ago. The company plans to release its 2015 capital expenditure budget on March 4. It spent 38.5 billion dollars in 2014, down 4 billion dollars from 2013. The company has said it expected budget below 37 billion dollars over the next several years.
On Friday, Chevron Corporation announced a 35 billion dollars capital and exploratory investment program for 2015. The 2015 budget is 13 percent lower than its total investments for 2014.
Data from service company Baker Hughes showed the number of rigs drilling for oil in the United States fell by 7 percent last week.
Some U.S. refineries workers started strike Sunday after failing to agree on a labor contract. Those refineries together produce about 10 percent of the nation's capacity.
Light, sweet crude for March delivery gained 1.33 dollars to settle at 49.57 dollars a barrel on the New York Mercantile Exchange, while Brent crude for March delivery moved up 1.76 dollars to close at 54.75 dollars a barrel. Endite