Oil at fresh 2016 highs on hopes of supply glut easing

SINGAPORE (May 16): Oil rose to fresh 2016 highs in Asia Monday as a slowdown in US drilling and increase in Chinese crude refinery processing bolstered hopes a supply glut would ease sooner than expected.

US oilfield services firm Baker Hughes said the number of US drilling rigs fell to its lowest level since October 2009, which is good news for prices as US production is a key contributor to the oversupply.

Chinese crude refineries also processed crude at record rates in April while production dipped to a 14-month low, Bloomberg News reported citing government data released at the weekend.

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