In the latest report regarding the energy sector, the oil rigs in the US maintained a steady count, reflecting a stable market under fluctuating geopolitical conditions. The data, compiled by Baker Hughes, lists the total number of oil rigs unchanged at 486, whereas the natural gas sector saw a decrease of one rig, resulting in a total of 101 active natural gas rigs.
The miscellaneous category of rigs stood firm at five. A year ago, the US was operating 504 oil rigs, alongside 115 gas rigs and three miscellaneous rigs, highlighting a decrease over the year. Presently, there are 592 rigs operational in the US overall, which is a notable fall from 622 rigs a year earlier.
Breaking down the statistics by state, Texas, the leading oil-producing state, witnessed a decrease of one rig, leaving it with a total of 281 oil rigs. Colorado also saw a marginal loss of one rig, while Wyoming experienced a slight growth with one additional rig. When examining the broader North American context, oil and gas rigs fell by 15, resulting in a total of 826 rigs active across the continent.
Specifically, Canada reported a drop of 14 rigs, concluding with 234 rigs in operation, with both oil and gas sectors losing seven rigs apiece. Market prices continue to fluctuate amidst this landscape. West Texas Intermediate (WTI) crude oil saw an increase of 1.2%, reaching $67.16 a barrel during late afternoon trading on Friday, while Brent crude climbed by 1.5% to hit $70.49.
However, it's worth noting that WTI is down by 3.9% for the week, and Brent has decreased by 3.3%. Adding to the volatility in the energy markets, US President Donald Trump indicated, via a post on Truth Social, that he is "strongly considering" the imposition of sanctions on Russian banks, in conjunction with potential tariffs on Russian products until a peace agreement is reached with Ukraine.
This strategic shift from the Trump administration prompted short covering in the oil market, according to Ole Hansen, Head of Commodity Strategy at Saxo, who noted the implications in his recent Friday communication. In a related development, the White House has issued temporary tariff exemptions for Canadian and Mexican goods aligned with a North American trade agreement.
Recently, the Trump administration escalated its tariffs on imports from China, provoking retaliatory actions from both Canada and China. Further complicating trade relations, it was reported that the US might impose tariffs on Canadian lumber and dairy products as early as Friday to align with Canada's existing tariffs on US products.
These developments were spotlighted by Bloomberg News, citing insights from Trump. Meanwhile, Hansen highlighted unsuccessful discussions regarding the resumption of Iraqi oil flows to Turkey from Iraqi Kurdistan, which continued to cloud the market outlook. Price: 43.18, Change: +1.28, Percent Change: +3.05.