In recent developments, the number of oil rigs operating in the United States remained stable for the week ending Friday, as reported by energy services firm Baker Hughes. The count for oil rigs held steady at 482 this week, showcasing a consistent operational level. In contrast, the natural gas rig count experienced a decrease, dropping by three to a total of 98, while the miscellaneous rig count remained unchanged at six.
This marks a significant comparison to data from the previous year when the U.S. boasted 525 oil rigs, 128 gas rigs, and six miscellaneous rigs in operation. Overall, the total number of operational rigs across the United States this week was recorded at 586, a decline from 659 rigs reported a year prior.
Analyzing the state-by-state rig count, Texas faced a reduction of two rigs, while Colorado, Louisiana, and Pennsylvania each experienced a decline of one rig. Expanding the scope to North America, the total count of oil and gas rigs saw an increase of five this past week, reaching 805, albeit still down from 847 reported during the same timeframe last year.
Specifically, Canada recorded an upsurge of eight rigs, bringing the total to 219, primarily attributed to oil rig operations. Market reactions have observed noteworthy fluctuations in crude oil prices, with West Texas Intermediate (WTI) crude oil witnessing a 3.5% decline, settling at $73.67 per barrel during late-afternoon trading on Friday.
Similarly, Brent crude oil prices fell by 3.2%, landing at $77 per barrel. Both benchmarks are on track for a worrying fourth consecutive weekly decline, raising concerns amongst investors and analysts alike. D.A. Davidson highlighted that the signs of dismal growth in global fuel demand have overshadowed concerns regarding potential supply disruptions caused by escalating tensions in the Middle East.
This week, Iran has publicly accused Israel of carrying out the assassination of Hamas leader Ismail Haniyeh in Tehran, vowing retaliatory actions. Despite the ongoing tensions, ING noted that there has been minimal to no impact on oil supply, a situation persisting since October. Market Price Insights: Crude oil prices are currently at $35.82, reflecting a change of -1.83 and a percentage change of -4.86, indicating a challenging environment for stakeholders in the oil market..