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Oil Prices Jump As The Rig Count Collapse Continues

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Via Oilprice.com

The US oil and gas rig count fell again this week, according to Baker Hughes, continuing the downward trend with a drop of 8 rigs for the week, according to Baker Hughes. This week marks ten decreases out of the last eleven weeks.

The total oil and gas rig count now stands at 822, or 245 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 691. The number of active gas rigs decreased by 3 to reach 130.

Oil rigs have seen a loss of 183 rigs year on year, with gas rigs down 63 since this time last year.

As for where the number of active rigs is slipping, Texas has seen a drop of 117 year on year, while Oklahoma has seen a drop of 93 rigs.

Even though the number of oil rigs has declined by 186 this year alone, production has grown from 11.7 million bpd at the beginning of the year to 12.6 million bpd for the fourth week in a row for week ending October 25—a growth of almost 1 million bpd in less than a year. With the growing production, the falling rig count has done little to boost prices. Related: Protect The Oil: Trump’s Top Priority In The Middle East

Oil prices were up on Friday ahead of the data, with WTI up slightly at 11:12am at $55.38 per barrel (+$1.20), which is $1 less than last week. Brent was trading up at $60.80 (+$1.18), which is down $.60 from last week.

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Canada’s overall rig count decreased this week, with oil and gas rigs decreasing by 5, after last week’s 4-rig decrease. Oil and gas rigs in Canada are down 56 year on year. 

Oil prices jumped after the rig count was released, with WTI trading at $55.49 and Brent trading at $60.95.

By Julianne Geiger for Oilprice.com

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