The oil rig count fell again this week from 318 to 316 after last week’s slight reprieve, coming in at the lowest at any point in time since Baker Hughes has been keeping track.
The 2-count loss in the number of active oil rigs was offset by an increase in U.S. gas rigs, up from 85 to 87, holding the total U.S. oil and gas rig count steady at 404.
The U.S. oil rig count fell by two, as reported by Baker Hughes’ latest oil rig count, while the U.S. gas rig count climbed slightly to 87.
This week’s slight fall in the number of active oil rigs comes after last week’s unchanged figures, which was preceded by eight weeks of free-falling. Related: Why $50 Oil Is Here To Stay
The total number of active oil rigs in the US of 316 represents less than 50 percent of last year’s U.S. oil rig count. Baker Hughes total oil and gas rig count for this time last year was 864 rigs. Oil rigs are now 49 percent of what they were a year ago, while gas rigs are 39 percent of what they were a year ago.
In recent weeks, Baker Hughes stated that it did not expect U.S. rig counts to really stabilize until the latter half of the year, and this week’s decline, although slight, supports the notion that last week’s stable figures were clearly temporary.
Prior to the release, FBR Capital Markets analyst Thomas Curran said he expected an uptick to 665 U.S. oil rigs by late 2018, echoing the Baker Hughes’ sentiment that a significant increase is unlikely to be right around the corner. Related: Why Canada’s Oil Sand Producers Will Recover Quickly From The Wildfires
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Image courtesy: Zerohedge
Oil futures continued to trade lower on the news. West Texas Intermediate (WTI) crude futures were down 44 percent to US$49.26 on the New York Mercantile Exchange.
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By Charles Kennedy of Oilprice.com
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