US oil rig count climbs as long-dated WTI rises above $54/b

London (Quantum Commodity Intelligence) - Another eight oil rigs were added in the US over the week to Friday, on top of the six from a week earlier, while another 15 rigs were added in Canada as the market responded to the rally in long-dated crude prices, data from Baker Hughes showed Monday.

The US total oil rig count climbed to 373, the highest since April 24, 2020.

The gas rig count also nudged up one over the week to Friday to a tally of 97.

The Canadian oil rig count increased to 74, the highest since early March.

The gas rig count in Canada was up nine over the week to 43, the highest since early April.

The crude rally has pushed front-month WTI consistently above $70/b over the last week, but the long-dated curve has also risen to levels where shale oil production books profits.

January 2028 WTI settled above $54/b on Friday.

A survey by the Dallas Federal Reserve in March found the average WTI price for a firm to profitability drill a new well ranged from $46/b for Midland crude in the Permian basin, the cheapest average, to $53/b for shale in the Permian.

Some indicated they could operate profitably in the Permian basin for less than $40/b, drilling costs included. 

In smaller basins, the average breakeven drilling cost was $58/b.