The the number of active oil and gas rigs rose slightly in the United States this week according to Baker Hughes, after a string of losses in the weeks prior, but the overall rig count is still well below year-ago levels for an eighth week in a row.
The total number of active oil and gas drilling rigs in the United States rose by 1 according to the report, with the number of active oil rigs increasing by 3 to reach 800 and the number of gas rigs decreasing by 2 to reach 184.
The combined oil and gas rig count is 984, with oil seeing a 61-rig decrease year on year and gas rigs down 13 since this time last year. The combined oil and gas rig count is down 76 year on year.
Year-to-date, the oil rig count has fallen from 877 active rigs on January 4 to 800, while gas rigs have fallen from 198 to 184 during that same time.
At 12:12pm EST, moments before data release, WTI was down $1.55 (-2.74%) at $55.04. WTI is trading down more than $3 per barrel week on week as the China-US trade war and threats of tariffs on Mexico goods continues to pressure prices as stubborn US crude oil inventories refuse to draw down to any significant degree.
The Brent benchmark was trading down as well, by $2.07 (-3.17%) at $63.26-also more than a $3 per barrel drop week on week.
US oil production this week contributed to the bearish sentiment, ticking up for week ending May 24 to again reach the all-time high of 12.3 million bpd that had been originally reached in April.
Canada's overall rig count increased by 7. Canada's oil rigs are now down 12 year on year, with gas rigs down 2 year on year.
WTI was trading down 3.41% on the day at 1:33pm EST, with Brent down 3.57%.
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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