Baker Hughes reported on Friday that the number of oil rigs in the United States rose by 12 to 338.
The total number of active oil and gas rigs increased for the week by 15—the largest increase to oil and gas rigs since January—with oil rigs increasing by 12 and gas rigs rising by 4. Miscellaneous rigs fell by 1.
Total oil and gas rigs in the United States are now down by 461 compared to this time last year.
The EIA’s estimate for oil production in the United States stayed at 11.1 million barrels of oil per day for the second week in a row.
Canada’s overall rig count also increased this week, by 9. Oil and gas rigs in Canada are now at 111 active rigs, and down 42 year on year.
Basins that saw gains this week include the Permian (+4), the Eagle Ford (+3), the Marcellus (+2), and DJ-Niobrara, Granite Wash, and Utica (+1 each). The only basin that saw a loss this week was the Cana Woodford, which lost one rig.
Check back later today for the Frac Spread Count by Primary Vision.
WTI and Brent were both trading down on Friday after making significant gains earlier in the week on vaccine optimism. Brent settled above $50 on Thursday, for the first time since March.
At 11:37 a.m. EDT, WTI was trading down 0.26% on the day at $46.65 but up more than $0.50 on the week. Brent was trading down 0.42% on the day, at $50.04, up $1 week on week.
Oil prices were holding steady after the release that showed the largest single-week gain in oil and gas rigs since January.
At 1:31 p.m. ET, Brent was still trading at $50.02.
By Julianne Geiger for Oilprice.com
More Top Reads From Oilprice.com:
- Oil Wells On Fire After Attack On Iraqi Oilfield
- Oil Market Hopeful As Vaccinations Begin
- Finding A Way Around The World's Largest Oil Chokepoint
Anyhow bullish news for an Industry that absolutely could use some. Tesla, Hewlett Packard and now Oracle moving to Texas is obviously hugely bullish news for the US energy Industry as well.
Typical for this time of year will be tax loss selling which could create some terrific bargains for both quality and beaten down names in what remains basically the greatest bull market in US History but hardly and for obvious reasons ("The Lockdown") the best of US economic situations. Indeed one could argue this is the worst US economic situation post World War 2 ever...which is ironic given so many "particulars"(such as this) as not just good but even great news.
Long US Treasuries.