Oil Prices Slip As Rig Count Inches Higher

Baker Hughes reported an increase to the number of active oil and gas rigs in the United States on Friday. Oil and gas rigs increased by 2 rigs, according to the report, with the number of active oil rigs increasing by 3 to 861 this week, while the number of gas rigs dipped by 1, hitting 186.

The oil and gas rig count now stands at 1,048-up 90 from this time last year, with the number of oil rigs accounting for all of that increase.

Canada gained 12 oil and gas rigs for the week, all of which were oil rigs. Canada's oil and gas rig count is now up just 3 year over year. Oil rigs are up by 12 year over year in Canada, while the number of gas rigs were flat.

The biggest winner by basin this week was the Permian, which gained 4 rigs. Granite wash came in second, adding 2 rigs for the week.

Oil prices were trading relatively even early on Friday morning in quiet trade, but were on track for their first weekly gain in four weeks as tension around a key Middle Eastern chokepoint between the Iran-backed Houthis and Saudi Arabia lent support to the price of oil earlier this week.

By 12:26pm EDT, WTI crude was trading down while Brent crude was trading up-widening the WTI discount to Brent. WTI was trading down 0.45% (-$0.31) at $69.30. Brent crude was trading up 0.05% (+$0.04) at $75.16 per barrel-both up on the week.

US production this was unchanged, staying at last week's psychologically important high of 11 million bpd, after hovering at 10.9 million bpd since week ending June 08.

At 15 minutes after the hour, WTI was trading down 1.59% at $68.50, with Brent trading down 0.80% at $74.52.

By Julianne Geiger for Oilprice.com

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