US drill rig count eases, Texas and Permian steady: Baker Hughes

Quantum Commodity Intelligence - North American drilling activity was slightly lower the week ending 17 February, falling for the second time in two weeks, oilfield services firm Baker Hughes reported.

The total weekly rig count eased by one unit to 760, although still up around 18% from the same time last year.

The number of rigs dedicated to crude dipped by two to 607, but still 87 higher than last year. Rigs drilling for natural gas increased by one to 151, up 27 on the year.

Texas was unchanged at 370 units but was still up 62 on the year, while the Permian Basin, spread across West Texas and New Mexico, was also unchanged at 352 for an increase of 46 on the year.

On the production front, the EIA called total output steady in its latest release at 12.3 million bpd, which remains the highest figure since prices collapsed in April 2020.

In a separate release, the EIA's Drilling Productivity Report said US shale recovered 1% in January to 9.2 million bpd.

NYMEX WTI trading on the Chicago Mercantile Exchange settled on Friday (10 February) at $76.34/b for the Mar23 contract, down 4.2% on the week.

Front-month Apr23 ICE Brent futures closed Friday at $83/b, down 3.9% over the same timeframe.

US natural gas continued to retreat following a mild winter and ample supplies, with the Mar23 Henry Hub contract on NYMEX closing Friday at $2.50/mmBtu, sharply down from $6/mmBtu in mid-December.