WTI opened at $37.52 per barrel Friday, a 1.98 percent improvement from last week when it closed at $36.79 per barrel. Additionally, the Baker Hughes rig count fell again, this week a seven count drop to 443 rigs.
Causes for reduced supply levels
Oversupply has been the blame of low prices as of late. A CNBC article earlier today reported diminishing oversupply of oil today, which is one of the main factors for the price increase. Some output decreases can be attributed to the Keystone pipeline shut down, reduced rig counts, and the continued production slowdown as prices are still less than favorable.
Stocks respond to price improvements
Whiting Petroleum Corp. closed last week at $7.82 per share and has improved since. This morning it opened at $9.44 per share. According to the Street, the 20 percent jump is due in part to the hopes that production rates will freeze along with economic reports which indicate the U.S. and Germany may soon have an increase in supply demand.
Chevron Corp. intends to cut 655 jobs in Houston as part of the payroll cuts announced last year in October. Between 2015 and 2016 about ten percent of the company’s workforce will be eliminated, according to Feulfix. Chevron stock (NYSE: CVX) opened at $94.79 this morning, just a few cents more than last week when it closed at $94.26 per share.