This week’s rig count by Baker Hughes shows the United States’ tally up by six rigs - the second week in a row the domestic count has increased.
The jump occurred during a week in which Brent oil prices rose above $51 a barrel for the first time since 2015, signifying a recovering energy market. In total, 414 oil rigs were active in the U.S. this week.
(Click to enlarge)
Image courtesy: Zerohedge.com
US oil rigs were up by three and gas rigs were up by three week-on-week.
John Kildulf, an analyst cited by CNBC, had noted before the report’s release that if the count increased by double-digit figures, it would be “significant.”
Nasdaq put the Brent oil barrel price at $50.70 Friday morning, though the number was higher earlier this week. Similarly, West Texas Intermediate traded at $49.21 at the end of Thursday, after it slightly declined from high a couple of days ago.
The Canadian count shot up by 24 rigs and the number of international oil rigs increased by nine facilities, leaving totals at 65 and 955, respectively.
Last week’s report showed the U.S. count up by nine rigs, which represented the largest increase for the figure since December 2015. Analysts expected to the return of drilling activity after the strong report, which marked the addition of 90 percent of all rigs added in 2016. Related: Is Colorado Ground Zero For The Next Shale Gas Boom?
The 3 June report also showed that while the oil rig count was up nine to 325, the gas rig count fell five to 82 rigs. The total rig count—both oil and gas—was up four to 408.
As Oilprice.com has noted repeatedly, any increase in oil prices would lead to an uptick in U.S. production, as evidenced by a halt to the previously steady decline in U.S. counts this week.
By Zainab Calcuttawala for Oilprice.com
More Top Reads From Oilprice.com:
- Grid Outages Are History With This Texan Innovation
- Lebanon Losing The Levant Basin Battle By Default
- Saudi Arabia To Tax Foreign Residence As Oil Crisis Continues