(MENAFN- ProactiveInvestors)
Crude oil prices dropped on Friday as a rising U.S. rig count stoked more concern about global oversupply while the opening of an investigation by Chinese regulators into suspected stock market manipulation further unsettled the market.
A sharp move lower in late-morning U.S. trade was exacerbated by thin market liquidity with many U.S. market participants off for the Independence Day holiday.
U.S. oil drilling increased for the week after 29 consecutive weeks of declines a sign U.S. crude production may start to increase more strongly again after a slowdown due to a period of low prices.
Oil rigs increased by 12 to 640 following a slump that cut the number of active U.S. rigs from a peak of 1609 in October to a nearly five-year low last week energy services firm Baker Hughes (NYSE:BHI) said.
Front-month U.S. crude CLc1 down US$1.40 to $55.51 a barrel.
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