The US oil and gas rig count fell again this week, decreasing by 12 for the week, according to Baker Hughes, but US oil companies are still pumping oil at record rates.
The total oil and gas rig count now stands at 886, or 169 down from this time last year.
The total number of active oil rigs in the United States decreased by 5 according to the report, reaching 733. The number of active gas rigs decreased by 7 to reach 153.
Oil rigs have seen a loss of 134 rigs year on year, with gas rigs down 33 since this time last year, compared to 858 and 187 active rigs, respectively, at the beginning of the year.
In the United States, weekly oil production is still near an all-time high. So while the number of oil rigs have declined by 144 this year alone, production has grown from 11.7 million bpd at the beginning of the year, to 12.4 million bpd for week ending September 6.
Oil prices were trading slightly up on Friday ahead of the data as the trade war between the US and China works against the Middle East tensions between Iran and the United States.
At 11:14 am EDT today WTI was up 0.09% at $55.14, but was trading down for the week. Brent was trading up on the day as well, by 0.13% at $60.46, but down on the week by about $1.00.
Canada's overall rig count decreased this week as well. Oil and gas rigs decreased by 13, after last week's 3-rig decrease. Oil and gas rigs in Canada are down 92 year on year.
WTI was trading down 0.18% shortly after data release, while Brent was trading down 0.12%.
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
Comments
Also lower number of rigs drilling doesnt decrease production right away, there is a delayed effect.