Baker Hughes has reported that the number of oil and gas rigs in the United States fell for yet another week, this time dipping 11 rigs—most of which was a loss to the number of oil rigs—the largest decline in the number of oil rigs this year.
WTI and Brent continue on their upward trend as even more analysts agree on the increased likelihood that OPEC will extend their production cut agreement throughout all of 2018, and as EIA reports a continued drawdown of crude oil inventories in the US. Prices will likely increase even more as the Iraq/Kurd situation drags on, and as Baker Hughes reports even further reductions to the number of active rigs in the United States.
The total oil and gas rig count in the United States now stands at 898 rigs, up 329 rigs from the year prior, with the number of oil rigs in the United States decreasing by 8 this week and the number of natural gas rigs decreasing by 3. The US oil rig count now stands at 729.
The spot price for WTI is also trading up to its highest level in six months, up .86% on the day at $55.01 at 11:05am EST—more than $1 up from last week. Brent crude was trading up 1.02% at $61.24 at that time—also $1 over last week’s price at the same time.
Despite the falling oil rig count, US crude oil production was up for the week ending October 27 at 9.553 million barrels per day—a new high for 2017.
More Top Reads From Oilprice.com:
- Will The Third Great Energy Revolution End The Oil & Gas Industry?
- Is This The Cure To Saudi Arabia’s Oil Curse?
- Big Oil CEO Slams Saudi Energy Reform