US rig count lower on sharp Texas decline: Baker Hughes

Quantum Commodity Intelligence – North American drilling activity continued the year's downward trend during the final week of September while also registering a third successive quarter of declines, according to the latest report from oilfield services firm Baker Hughes.

The total rig count fell by seven units to 623 the week ending 29 September, which was 142 rigs below the same stage last year, or down 19%, and the lowest level since February 2022.

The rig count was also down nine on the month and 51 over the quarter, although this was lower than the 81 reported in the second quarter.

The oil rig count dropped five rigs to 502 last week, 102 fewer than at the same stage last year, while rigs drilling for gas eased by two rigs to 116, which was 43 fewer on the year.

Texas led the declines again, dropping eight units to 304 and is now 56 fewer than a year ago, offsetting small gains in other states. The Permian Basin, spanning West Texas and New Mexico, dropped five rigs to 312 and is now 32 lower from year-ago levels. 

Meanwhile, NYMEX WTI trading on the Chicago Mercantile Exchange settled on Friday at $90.79/b for the Nov23 contract, up 2.2% on the week.

Front-month Nov23 ICE Brent futures expired at $95.31/b, up 2.4% over the same timeframe.

US natural gas was higher over the week as the Nov23 Henry Hub contract on NYMEX closed at $2.89/mmBtu, up over 3%.