The United States saw a three new oil rigs brought online, bringing the total count to 428, according to Baker Hughes. The number of rigs marks the highest number of oil rigs in production since February 12, and with fifteen straight weeks of no reduction to the number of active oil rigs, we are in the middle of one of the biggest recoveries in US oil.
This week marks six straight weeks of oil rig gains, and the fifteen-week streak of no oil rig losses is the one since 2011, when the oil rig count saw no negative movement for nineteen straight weeks.
Since June 24, 2016, the rig count has risen by 98 sites. From its 2016 low on May 27, the count is up by 112.
Looking at the longer view, the oil rig count is down by 177 from 605 this same time last year, but still, analysts are predicting that the oil rig count will continue to rise, as the price of oil reached $50 per barrel earlier this week and is bound to renew producer confidence.
Gas rigs declined by 2 this week, which is 95 fewer rigs than were in production a year ago, but are still up 13 over the low of 81 for 2016.
The international rig count for September 2016, also reported today, held near steady at 934, down just 3 from 937 in August. Although fairly steady compared to last month, the international rig count is down 206 from September 2015.
WTI is trading down 1.84% at $49.51 as of 1:35 EST, and Brent is trading down 2.04% at $51.44.
By Julianne Geiger for Oilprice.com
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