The number of oil rigs in the United States has experienced a rise, adding seven rigs in the week ending Friday, as reported by energy services company Baker Hughes. This increase brings the total count for oil rigs to 488, up from 481 the previous week. Conversely, the gas rig count has seen a decline of two rigs, which now stands at 99, while miscellaneous rigs decreased by one to a total of five.
This data highlights the year-over-year changes, noting that the U.S. had 503 oil, 120 gas, and three miscellaneous rigs operational at the same time last year. In total, there were 592 rigs operating across the U.S. as of Friday, reflecting a decrease from 626 rigs in operation a year prior. Among the states, Oklahoma led the additions with five new rigs, whereas New Mexico and Utah each reported a loss of one rig. Looking at the broader North American context, the count of oil and gas rigs saw a slight increase of three, bringing the total to 836, although Canada experienced a drop of one rig, with a total of 244 still operational. In market movements, West Texas Intermediate crude oil experienced a decline of 3% in late trading, settling at $70.31 per barrel.
Meanwhile, Brent crude fell by 2.8% to establish a price of $74.32. Both types of crude oil appear to be heading towards weekly losses. Market analysts note that the current trading environment is characterized by "an increasingly erratic message flow from Washington." Reportedly, this duality raises prospects for increased U.S.
production while simultaneously stoking fears regarding global growth and demand. Ole Hansen, Head of Commodity Strategy at Saxo Bank, emphasized these sentiments in a report released on Friday. Furthermore, markets are keenly awaiting decisions from the Organization of the Petroleum Exporting Countries (OPEC) and its allies concerning output levels, as voiced by Hansen.
He elaborated, stating, "With limited clarity over the effects of current U.S. policies and threats, along with uncertainties surrounding key producers like Russia and Iran, it is likely that the group will proceed with caution, likely maintaining current production levels and reiterating their commitment to compliance." Additionally, last Thursday's report from the Energy Information Administration indicated that commercial crude stockpiles in the U.S.
surged higher than anticipated last week, further affecting market dynamics..