Oil rises towards $61

Brent crude oil rose towards $61 a barrel as expectations of falling US rig count numbers outweighed concerns about oversupply. The number of rigs drilling for oil in the United States fell to its lowest since August 2011.

US crude inventories rose 7.7 million barrels to 425.6 million barrels, rising for a sixth straight week to record highs, data from the Energy Information Administration (EIA) show. Stockpiles of West Texas Intermediate (WTI) US crude at the Cushing oil hub in Oklahoma rose the most in six years, the EIA said.

Brent crude futures for April were up 56 cents at $60.77 having hit an intraweek low of $57.80 in the previous session. US crude for March delivery was up 29 cents at $51.45.

Expectations of continued oversupply were supported by rising production levels from top oil exporter Saudi Arabia.

Miswin Mahesh, Barclays oil analyst said exports from Saudi Arabia could reach 9 million barrels per day next year as it focuses on protecting market share.

In Libya, three car bombs killed 40 people in the eastern city of Qubbah, days after Egyptian air strikes on Islamic State militants there. Libya’s oil output has almost completely collapsed, falling to less 200,000 barrels per day (bpd) from 1.6 million bpd before the country’s 2011 civil war.