The number of oil rigs in the US decreased by two over a five-day period ending Wednesday. The latest data from energy services company Baker Hughes reveals that the oil rig count fell to 477, down from 479 reported last Friday. In contrast, the gas rig count experienced a slight increase, adding one rig to reach a total of 100, while the miscellaneous rigs remained stable at five.
This is a notable shift compared to the previous year, where there were 505 oil, 116 gas, and four miscellaneous rigs operational. As it stands, 582 rigs were operating across the US as of Wednesday, marking a decline from the 625 rigs that were active a year ago. Among the states, Wyoming experienced a reduction in its rig count, dropping one rig to 18. In North America as a whole, the total number of oil and gas rigs saw an increase of three, bringing the total to 787, while Canada also observed a gain of four rigs, reaching a total of 205. In market movements, West Texas Intermediate crude oil and Brent prices remained nearly unchanged by Wednesday afternoon, trading at $68.76 and $72.26 per barrel, respectively. Recently, ING Bank noted, "Israel and Hezbollah announced a 60-day ceasefire agreement and plans to discuss a longer-lasting peace agreement." This development has prompted the oil market to reassess its dynamics, particularly how it might impact other ongoing conflicts within the region. Additionally, traders are closely watching the upcoming meeting of the Organization of the Petroleum Exporting Countries and its allies this weekend.
It's expected that discussions will revolve around potential delays in production increases, as any premature decision to ramp up production could lead to greater oversupply, as highlighted by ING. Crude oil prices are currently hovering near significant support levels while markets project growth and demand trends for 2025.
In a related report, Saxo Bank indicated a cautious stance as traders evaluate future market conditions. The Energy Information Administration reported on Wednesday that US commercial crude stockpiles significantly decreased more than initially anticipated last week..