The number of active oil rigs in the United States rose this week by 2 rigs showing a growth-albeit a slower one-in oil drilling as US players proceed more cautiously than before. Combined, the total oil and gas rig count in the US now stands at 958 rigs, up 495 rigs from last year, with oil rigs in the United States increasing by 2 and gas rigs increasing by 6 this week.
Canada, which added 15 oil and gas rigs the week prior, added another 14 rigs for week this week. Of the 14 new active rigs this week in Canada, 11 were oil rigs. Oil rigs in Canada now stand at 129, up 60 on the year.
Prices had risen to an eight-week high on Thursday, a continued to climb on Friday, with WTI trading up 1.08% at $49.57 at 12:01pm and Brent crude trading up 1.67% at $52.35. Oil prices are on track for the largest weekly gain in 2017 as the momentum from reports that Saudi Arabia, Kuwait, and UAE would cut crude oil exports and a larger than expected inventory draw for crude oil and gasoline.
But while the rise in the number of active rigs in the US slows, US crude oil production is not, with average production averaging 9.41 million barrels per day for the week ending July 21-more than 1 million barrels higher than in in January 3, 2014, when 1,378 US oil rigs were active.
By basin, the Permian added 5 rigs, and Cana Woodford added 4. Eagle Ford lost two rigs, and DJ-Niobrara lost one.
At 10 minutes after the hour, WTI was trading at $49.70 with Brent crude trading at $52.47 and up almost 2% on the day.
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