In a recent update from the energy sector, the number of oil rigs operating in the United States experienced a modest rise, increasing by three in the week ending Friday, according to compiled data from Baker Hughes, a leading energy services company. This week’s figures revealed that the oil rig count increased from 482 to 485.
However, the count for gas rigs saw a decline, dropping by one to a total of 97, while the miscellaneous rigs remained unchanged at six. Notably, a year prior, the United States had a total of 525 oil rigs, 123 gas rigs, and six miscellaneous rigs active, highlighting a year-on-year reduction in operational capacities, as reported by the company. The overall tally of active rigs in the US stood at 588 this week, a decrease from 654 operational rigs at the same time last year.
In terms of state-specific data, Texas saw an increase with two additional rigs, while Louisiana experienced a decrease, losing one rig. Expanding the view to North America, the number of oil-and-gas rigs remained stable week-over-week at 805 in total. This figure contrasts with the 844 rigs operational at this time last year.
In Canada, the rig count saw a slight reduction of two, bringing the total down to 217 rigs. On the financial front, West Texas Intermediate (WTI) crude oil prices edged up by 0.8% to reach $76.81 per barrel in late-afternoon trading on Friday. Meanwhile, Brent crude increased by 0.5%, trading at $79.53 per barrel.
Both benchmarks appeared poised for a weekly gain after facing four consecutive weeks of declines. Market analysts at D.A. Davidson commented on the ongoing geopolitical climate, citing 'persistent fears of a wider Middle East conflict.' Just last week, Iran accused Israel of orchestrating the assassination of Hamas leader Ismail Haniyeh in Tehran, with pledges of retaliation indicating potential escalations in hostilities. Furthermore, market observations suggest that 'Iran is keen on avoiding a regional war that could severely disrupt oil and gas flows from the Middle East,' according to insights shared by Saxo Bank.
Nonetheless, supply risks remain heightened, particularly stemming from disruptions due to a production halt at Libya's largest oilfield, as noted by Ole Hansen, Head of Commodity Strategy. The current market price stands at $34.95, with a notable change of -0.26, reflecting a percent change of -0.72..