In the latest report, the number of oil rigs operating in the United States saw a modest increase, marking a rise of one rig during the week ending on Friday. This increase brought the total count of oil rigs to 482, which is an uptick from the previous count of 481. However, the natural gas segment experienced a setback, losing two rigs to conclude at 99.
The miscellaneous rigs remained stable, holding at four. Notably, a year ago, the US was operating a total of 502 oil rigs, 118 gas rigs, and four miscellaneous rigs, according to Baker Hughes data. The overall rig count across the United States stands at 585, reflecting a decline from 624 rigs in operation during the same week last year.
Among the states leading in production, Texas, the top oil producer, faced a decrease of two rigs, bringing its total to 283, while Oklahoma managed to add one rig to its count. On a broader scale, the North American landscape for oil and gas rigs experienced a decrease of three, totaling 802 rigs compared to the previous week, and down from 822 rigs a year prior.
Canada’s figures reflected a drop of two rigs, leading to a count of 217 rigs currently operating in the nation. As market dynamics fluctuate, WTI futures witnessed a decline of 2.1%, settling at $69.20 per barrel in late trading on Friday. Concurrently, Brent crude oil prices fell by 1.9%, priced at $73.07 per barrel.
With this movement, WTI is gearing up for a significant weekly loss of 8%, while Brent faced a slump of 7%. Concerns regarding a decrease in oil prices have emerged, as industry analysts noted possible struggles ahead. A report from D.A. Davidson emphasized that oil prices are poised for their most notable weekly loss in over a month, attributing this trend to fears surrounding diminishing demand. Earlier this week, critical updates from the International Energy Agency revealed a revision in its global oil demand growth forecast for 2024, citing weak demand signals coming from China.
Furthermore, the Organization of the Petroleum Exporting Countries (OPEC) has adjusted its projections for 2024 and 2025 downward. In light of this, ING expressed concerns in a note, pointing out that market outlooks released by both OPEC and the IEA indicated a sluggish demand paired with a considerable supply surplus anticipated for the upcoming year, which continues to apply downward pressure on oil prices.
Price: 36.27, Change: -0.62, Percent Change: -1.67.