U.S. Oil Rig Count Falls As Prices Falter

The number of active oil and gas rigs in the United States fell this week by 4 rigs.

The total oil and gas rig count in the United States now stands at 936 rigs, up 412 rigs from the year prior, with the number of oil rigs in the United States decreasing by 2 this week and the number of natural gas rigs decreasing by 2. The oil rig count now stands 320 above the count one year ago.

The spot price for WTI fell earlier on Friday as traders feared further rises in U.S. crude oil inventories as refineries in the US once again brace for stormy weather, preparing evacuations and shuttering in anticipation-this time-of Tropical Storm Nate. Prices were weighed down a day earlier as well, after the EIA reported that US oil exports had reached an all-time high of 1.98 million bpd for week ending September 29.

WTI is down 2.91% to the ever-important $50 mark, at $49.31 at 12:18pm EST on Friday-still more than $2 under over last week's price of $51.67. Brent crude was trading down today at 2.79% on the day at $55.41- more than $1 under last week.

Oil rigs in the United States now number 748-320 rigs above this time last year. Although the number of oil rigs are still up significantly year on year, the increases slowed in the Q2 2017, and have reversed in Q3. The first quarter 2017 saw 137 oil rigs added in the United States, while the second quarter 2017 saw 97 rigs added. Q3, on the other hand, saw a net decrease in the active number of rigs, ending the quarter down by 6. Q4 is now starting off in the red as well. Related: Oil Prices May Hit $60 By End Of 2017

Still, US crude oil production is continuing its ascent, now at 9.561 million barrels per day for the week ending September 29, 2017-with almost new 2017 highs with each week except for a couple of weeks that had stumbled due to Hurricane Harvey.

At 10 minutes after the hour, WTI had fallen further and was trading at $49.24. Brent crude had rallied somewhat, trading at $55.53 but still down 2.58% on the day.

By Julianne Geiger for Oilprice.com

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