The number of oil rigs in the US decreased by one in the week ending Friday, based on data compiled by the energy services company Baker Hughes ($BKR). This reduction brought the total oil rig count down to 479 from 480 on a weekly basis, while the gas sector saw a slight increase, adding one rig to reach a total of 102.
The miscellaneous rig count remained steady at four. As of November 3, 2023, the US had a total of 496 oil rigs, 118 gas rigs, and four miscellaneous rigs in operation. This week, the overall rig count in the US stood at 585, down from 618 a year prior. Looking at individual states, Texas, the top oil-producing state, experienced a loss of two rigs, resulting in a total of 281, while Oklahoma's count decreased by one.
Pennsylvania and Utah each managed to add one rig. In North America, the total count of oil and gas rigs decreased by three, bringing the total to 798, compared to 814 from the previous year. Canada saw a decline as well, with the rig count dropping by three to 213. In the commodities market, West Texas Intermediate crude oil rose 0.3% to $69.48 per barrel in late-afternoon trading on Friday, while Brent crude increased by 0.4% to $73.09 per barrel.
This marks the third consecutive daily gain for both crude oil types, although they still experienced a decline for the week. Concerns over geopolitical tensions have impacted oil prices. Reports suggest that Iran may be preparing for a retaliatory strike against Israel from Iraq in the upcoming days, as stated by D.A.
Davidson in a market note. An Israeli military source indicated the nation is at a 'high level of readiness' in anticipation of this potential retaliation, particularly as US presidential elections approach, as reported by CNN..