After a brutal week for oil prices courtesy of an outbreak of a deadly virus in China, Baker Hughes reported that the number of oil and gas rigs in the US decreased this week, to 794—a decrease of 2 rigs. Oil rigs, however, increased for the week.
The total oil and gas rig count is now 265 down from this time last year.
For oil rigs, this week saw an increase of 3 rigs, according to Baker Hughes data, bringing the total to 676—a 186-rig loss year over year.
The total number of active gas rigs in the United States fell by 5 according to the report, to 115. This compares to 197 a year ago.
Meanwhile, production has finally surpassed the psychologically important threshold of 13 million bpd, according to data provided by the Energy Information Administration, where it has sat for two weeks.
The WTI benchmark at 11:58pm was $54.23 (-2.45%) per barrel—a more than $4 per barrel decline from this time last week as fears of slowing demand in China once again takes over the market concerns as the new SARS Coronavirus has restricted travel in China ahead of the Lunar New Year weekend. The Brent benchmark was trading at $59.89 (-2.27%)—nearly $5 per barrel below last week’s levels.
What’s more, the EIA is expecting that US shale production will increase by another 22,000 bpd in February, according to the latest Drilling Productivity Report published this week.
Canada’s overall rig count stayed the same this week, at a total of 244 rigs. Oil and gas rigs in Canada are now up 79 year on year.
By Julianne Geiger for Oilprice.com
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