U.S. Oil Rig Count Increases For 15th Straight Week
The number of active oil and gas rigs in the United States rose by 13 on Friday, according to oilfield services provider Baker Hughes. The total oil and gas rig count in the US now stands at 870 rigs, or 450 above the count a year ago. Oil rigs increased by 9, while gas rigs bumped up 4.This week marks the fifteenth straight build for oil rigs (+175 or +33.5% since January 13). While gas rigs haven’t enjoyed the same persistently ascending trajectory week to week, they have climbed 10 of the last fifteen weeks, for a total gain of 35 (+25.7%).So far this year, traders have watched, mostly likely in horror, at the tug of war between OPEC’s efforts to “rebalance” the market, and U.S. shale’s efforts to take full advantage of that rebalancing effort. For every depressing API or EIA report about the lackluster results of the global inventory drawdown efforts, and for every rig count report that shows U.S. Shale keeps picking up steam, OPEC’s obedient compliance to the cuts and talks of an extension appeases at least enough of the masses to generally keep oil above $50.
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