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U.S. Oil Rig Count Falls To Lowest Level Since 2009

Baker Hughes reported on Friday that the combined oil and gas rig count in the U.S. fell this week by 4, to 247.

The total oil and gas rigs are down by 687 compared to this time last year.

The number of oil rigs slipped for the week by 4 rigs, according to Baker Hughes data, bringing the total to 176, compared to the 764 active oil rigs this time last year. Two of those four rigs lost this week were in the Permian Basin.

The total number of active gas rigs in the United States stayed the same at 69 total rigs. This compares to 169 rigs a year ago.

To compare active rigs with supply figures, the EIA’s estimate for oil production in the United States fell for the week ending July 31—the last week for which there is data, at 11 million barrels of oil per day. Oil production in the United States is 2.1 million bpd less than its all-time high reached earlier this year.

Canada’s overall rig count rose this week by 2, reaching 47 active rigs. Oil and gas rigs in Canada are now down 93 year on year.

The Frac Spread Count in North America, provided by Primary Vision, has been trending higher in recent weeks, driven mainly by a modest increase in activity in the Permian.

Oil prices were trading down on the day on Friday despite a significant inventory draw earlier in the week, as the market corrected itself from the price gains recorded earlier in the week.

At 12:11 am EDT, WTI was trading down 1.43 percent at $41.35—roughly $1.30 up on the week. Brent was trading down 1.29 percent on the day, at $44.51, also more than $1 per barrel higher than last Friday.

At 1:05 pm, WTI was trading at $41.29 per barrel, with Brent changing hands at $44.45 per barrel.

By Julianne Geiger

Aug-9-2020 04:51:50 PM