The count of oil rigs in the United States remained unchanged during the week ending Friday, while crude futures experienced an upswing as concerns intensified over a potential Israeli strike on Iran's nuclear facilities. This escalation followed the abrupt collapse of Bashar Al-Assad's regime in Syria. The count for oil rigs stood steady at 482, while the gas sector saw the addition of a rig, bringing the total to 103, as revealed by data compiled by energy services firm Baker Hughes.
A decline was noted in the miscellaneous category, losing one rig for a total of four. A year prior, the US had a total of 501 oil, 119 gas, and three miscellaneous rigs in operation. Overall, Baker Hughes reported that 589 rigs were functional in the US as of Friday, a decrease from 623 a year earlier. Across North America, the total count of oil and gas rigs fell by three to 780.
Notably, Canada also recorded a drop of three, bringing the total down to 191 rigs. In Friday’s late-afternoon trading, West Texas Intermediate crude oil rose by 1.9% to $71.38 per barrel, while Brent crude increased by 1.6% to $74.55 per barrel, both on track for weekly gains. The recent fall of Assad's regime in Syria has created an atmosphere of uncertainty in the Middle East, a region already marked by ongoing conflicts.
Reports indicated that Israel initiated airstrikes against military targets within Syria earlier in the week, further complicating the geopolitical landscape. RBC Capital Markets indicated, "There is a heightened risk of an Israeli strike on the Iranian nuclear facilities. Israeli airstrikes this week have reportedly diminished Syrian air defense capabilities, allowing Israeli jets greater coverage on their path to Iran." Statements from officials in Tel Aviv and Washington emphasized the prevailing sentiment that Israel is presented with a considerable opportunity to deliver a significant blow to the Iranian regime amidst the Axis of Resistance reportedly feeling weakened. Furthermore, the Organization of the Petroleum Exporting Countries (OPEC) recently revised its global oil demand forecasts downward for the fifth month in a row, following certain members of OPEC and its allies, known as OPEC+, continuing their oil production cuts..