Baker Hughes reported a sharp drop in the number of active oil and gas rigs in the United States this week.
The total number of active oil and gas drilling rigs fell by 14 rigs, according to the report, with the number of active oil rigs falling by 15 to reach 847 and the number of gas rigs increasing by 1 to reach 198.
The oil and gas rig count is now 99 up from this time last year, 82 of which is in oil rigs.
Oil prices were trading up earlier on Friday as fears heightened over what some see as tight oil supplies with Venezuela’s oil-industry prospects look increasingly dim while OPEC seems content with its current scaling back of production despite those concerns. A further tailwind for oil prices came late on Thursday as President Donald Trump suggested there would be further efforts made to resolve the trade conflict with China, “leaving NOTHING unresolved on the table,” Trump said in a Thursday tweet.
At 12:04pm EST, the WTI benchmark was trading up $0.82 (+1.52%) at $54.61—a roughly $1 increase from last week, with Brent crude trading up $1.17 (+1.92%) at $62.01 per barrel—up less than $1 per barrel on the week.
Canada’s oil and gas rigs increased by 11 rigs this week. Canada’s total oil and gas rig count is now 243, which is 99 fewer rigs than this time last year.
The EIA’s estimates for US production for the week ending January 25 shows an increase at an average rate of 11.9 million bpd—a record for the US—for the third week in a row.
By Julianne Geiger for Oilprice.com
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