Oil extends gains on lower U.S. rig count, China stimulus

Oil prices rose on Monday, 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 on Friday. 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. Oil markets also found some support from a move by China's central bank on Sunday to combat slower growth by cutting the amount of cash that banks must hold as reserves.

via Business News http://ift.tt/1yJzYWu