US drill rig count edges higher on Permian boost: Baker Hughes

Quantum Commodity Intelligence - North American drilling activity was higher during the week ending 24 March, posting a second weekly gain, oilfield services firm Baker Hughes reported.

The total weekly rig count increased by four units to 758, up around 13% up from the same time last year.

The gains were confined to the oil sector where the rig count increased by four to 593, up from the previous week's nine-month low. The number of rigs drilling for natural gas were unchanged at 162.

Texas added one rig to stand at 372 units and 46 more than a year ago, while the Permian Basin, spread across West Texas and New Mexico, was up three rigs at 353 for an increase of 34 on the year.

US production over the week was steady, with the EIA figures showing output just shy of three-year lows touched last month at 12.25 million bpd.

Oil prices recovered over the week after but still were under pressure with financial market turmoil still playing out.

NYMEX WTI trading on the Chicago Mercantile Exchange settled on Friday (24 March) at $69.26/b for the Apr23 contract, up 3.5% on the week, having nosedived around 13% in the week before.

Front-month May23 ICE Brent futures closed Friday at $74.99/b, up 2.8% over the same timeframe.

Natural gas retreated with the Apr23 Henry Hub contract on NYMEX closing down 8% on the week at $2.21/mmBtu, as the winter heating season draws to a close, while a further delay on exports from the Freeport LNG terminal also weighed on prompt prices.