• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 4 hours Adsorbent natural gas tanks are revolutionary.
  • 5 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 3 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 6 mins Visualizing How Much Oil Is In An Electric Vehicle (Hint: a heckuva lot)
  • 7 hours IMO2020 To scrub or not to scrub
  • 52 mins Total nonsense in climate debate
  • 30 mins Theresa May to Step Down
  • 20 hours Look at the LONGER TERM bigger picture of international oil & gas. Ignore temporary hiccups.
  • 1 day Will Canada drop Liberals, vote in Conservatives?
  • 12 hours IMO 2020 could create fierce competition for scarce water resources
  • 1 day Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 1 day Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 1 min BBC: Proposal to spend 25% of EU budget on climate change
  • 1 day IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Trending Discussions

Oil Relieved As Rig Count Shows Negligible Gain

The U.S. oil and gas rig count was up only one rig this week, defying a significantly higher upwards trend reported by Baker Hughes for multiple weeks running.

U.S. oil rigs were up three, while natural gas rigs were down two, bringing the total advance to one. Rig gains in Texas’ Permian basin were offset by losses elsewhere.

While this represents the fifth straight increase in the U.S. oil rig count, the pace has fallen from the previous week.

The oil price response has been lackluster and the Baker Hughes data follows a 20% drop in oil prices from recent highs as new concerns hit the market over an increase in the supply glut due to a revival in US production. The market is now bearish.

West Texas Intermediate (WTI) opened trading today at $41.12 and was hovering around $41.24 by midday. Brent crude opened at $43.14 and hit around $43.20 at the time of the rig count release.

 

(Click to enlarge)

Last week, the U.S. rig count was up 15 oil and gas rigs, nearly doubling the previous week’s rig increase and heralding new supply to add to the existing glut and push oil prices down further.

Texas has seen the biggest gains for the past two weeks, with all 15 new rigs last week brough on line here, and most significantly in the Permian basin, where eight new rigs were active.

The U.S. rig count took a major dive beginning in August 2015, but since May 2016 has started the climb back upwards.

The U.S. rig count is still down 411 from the same time a year ago.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • Kr55 on July 29 2016 said:
    Judging by the producer results coming out, the increase of rigs was definitely jumping the gun. It's not like producers are 100% hedged, their new meagre hedges are just giving some extra revenue from existing production. The risk is still massive for any added production coming on, and DUCs still cost millions a piece to bring online and just requires more and more borrowing on top of the massive debts they have.

    Can't stop producers from being greedy and too optimistic, it's still up to lenders to be the responsible ones, and this last month is yet another lesson for lenders that have been too liberal allowing producers to live beyond their means.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News