The number of active oil and gas rigs in the United States increased on Friday by 18 for a total of 712 active rigs, according to oilfield services provider Baker Hughes, which is 93 rigs above the rig count a year ago.
Las week, the oil and gas rig count was up by 35.
As was the case last week, most of this week's gains were oil rig gains, which were up 15, from 551 last week to 566 this week. The number of active oil rigs in the United States is now 68 more than the same week last year.
Gas rigs also saw a modest three-rig increase, from 142 last week to 145 this week, which is 24 above the count for the same week last year. This marks 12 straight increases to the gas rig count.
The increase in the number of active rigs comes as OPEC has managed to largely adhere to its agreement to cut production, much to the surprise of many. And while OPEC and non-OPEC producers seem to be well on their way to taking between 1.7 million bpd and 1.8 million bpd worth of production out of the market in an effort to lift prices, rocky oil markets that were in critical distress in early 2016 seem to be reluctant to buy-in.
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At 12:23pm was trading down 1.9% at $52.76, with the Brent Crude benchmark trading down 2.12% at $55.05.
Drillers are still adding rigs to the Permian basin at record paces. After a 10-rig gain this week alone, the Permian now has 291 oil and gas rigs-109 rigs more than the same week last year.
WTI was trading at $52.83 moments after data release, with Brent at $55.11.
By Julianne Geiger for Oilprice.com
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Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group. More
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