The number of oil rigs in the US has seen a decrease of two in the week ending Friday, as reported by energy services company Baker Hughes. This reduction means the tally for oil rigs has fallen to 480 from 482 on a weekly basis. On the other hand, gas rigs have added two to reach a total of 101. There remains a steady count of four miscellaneous rigs in operation.
In comparison to the same time last year, the US had 504 oil, 117 gas, and four miscellaneous rigs operational. This week, a total of 585 rigs are operational across the US, marking a drop from 625 a year earlier. A closer look at state-wise data shows that Louisiana has lost two rigs while Pennsylvania has seen a reduction of one.
Conversely, New Mexico, Ohio, and Oklahoma each saw an increase of one rig. When we extend our analysis to North America as a whole, oil and gas rigs have also decreased by one to a total of 801, down from 821 a year ago. Canada, specifically, has registered a decline, dropping one rig to 216. In the market, West Texas Intermediate crude oil experienced a 2.3% increase, arriving at $71.81 a barrel in late-afternoon trading on Friday.
Meanwhile, Brent crude saw a similar rise of 2.2%, climbing to $76 a barrel. Both oil benchmarks are on track to mark weekly gains. Market watchers are kept on edge amidst rising geopolitical tensions, particularly in the Middle East, which has influenced trader sentiment as discussions around a planned resumption of ceasefire talks regarding Gaza unfold.
According to D.A. Davidson in a client note on Friday, traders are focusing on potential negotiations surrounding hostages and ceasefire agreements. However, reports suggest that a notable breakthrough is unlikely before the US presidential election scheduled for November 5. On another note, government reports released on Wednesday indicated that commercial crude stockpiles in the US increased more than anticipated last week.
With prices sitting at $37.63, reflecting a change of +0.84 and a percent change of +2.30, market dynamics continue to shift amid these developments..