US drill rig count eases despite Permian gain: Baker Hughes
Quantum Commodity Intelligence - North American drilling activity was lower the week ending 14 April, despite a gain in the Permian Basin, oilfield services firm Baker Hughes reported.
The total weekly rig count fell by three units to 748, although up by around 8% up from the same time last year.
The number of rigs dedicated to crude dipped by two to 588, which was up 40 on the year. Rigs drilling for natural gas fell by one, standing at 157 for an increase of 14 on the year.
Texas lost two rigs to stand at 375 units and 29 more than a year ago, while the Permian Basin, spread across West Texas and New Mexico, was up three rigs at 357 for an increase of 22 on the year.
US oil markets continued the firm recovery since last month's banking prices that saw crude slump to around $65/b, but natural gas remains in the doldrums.
NYMEX WTI trading on the Chicago Mercantile Exchange settled on Friday (14 April March) at $82.52/b for the May23 contract, up 2.25% on the week.
Front-month Jun23 ICE Brent futures closed Friday at $86.31/b, up 1.4% over the same timeframe.
Natural gas continued to struggle with the May23 Henry Hub contract on NYMEX closing at $2.11/mmBtu on Friday, having at one point slumped to fresh two-year lows of around $1.95/mmBtu.
Last week, the US Energy Information Administration (EIA) projected an increase in US natural gas production this year and next in its Short Term Energy Outlook (STEO).
The EIA said dry gas production will increase to 100.87 billion cubic feet per day (bcfd) in 2023 and 101.58 bcfd in 2024, up from a record 98.11 bcfd in 2022.
