Shares of energy producers fell alongside oil futures as the extension of OPEC and Russia's production-cut deal failed to quell worries about oversupply of oil and gasoline.
The Baker Hughes count of oil rigs active in the U.S. rose by two to 722 last week, a sharp increase from a year earlier.
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Analysts at one brokerage said fears that a shift to electric vehicles from the internal-combustion engine would eventually wipe out the oil industry are, to some extent, misguided. "We believe the 'peak oil demand' thesis has a very large blind spot on miles traveled, leaving us constructive on US refiners and low-cost US oil producers," said analysts at brokerage Morgan Stanley, in a research note. "Our base case is for gasoline demand to fall by 0.2% compound annual growth rate through 2040, as a slightly more than doubling of emerging-market demand offsets a 60% reduction in developed-market demand over that time."
Rob Curran, firstname.lastname@example.org
(END) Dow Jones Newswires
May 30, 2017 17:27 ET (21:27 GMT)