US drill rig count down as low prices hit supply: Baker Hughes

Quantum Commodity Intelligence – North American drilling activity dropped by the highest level in two months the week ending 5 May, as both Texas and the Permian Basin reduced rigs, oilfield services firm Baker Hughes reported.

The total weekly rig count was down by seven units to 753, up by around 6% from the same time last year.  

The number of rigs dedicated to crude fell by three to 588, which was up 31 on the year.

Rigs drilling for natural gas was down by four, standing at 157 for an increase of 11 on the year.

Texas lost nine rigs to stand at 368 units but 24 more than a year ago, while the Permian Basin, spanning West Texas and New Mexico, was also down five rigs at 356 for an increase of 21 on the year.

Eagle Ford was down three rigs, although increases on some of the smaller basins helped limit the overall losses.

Oil services firms, including Baker Hughes, warned in recent earning reports that North American drilling activity was set to slow down this year amid weaker prices, especially in the natural gas sector.  

NYMEX WTI trading on the Chicago Mercantile Exchange settled on Friday (5 May) at $71.34/b for the Jun23 contract, down 7.1% on the week.

Front-month Jul23 ICE Brent futures closed at $75.30/b, down 6.25% over the same timeframe.