US rig count nudges up, Texas higher again: Baker Hughes
Quantum Commodity Intelligence – North American drilling activity nudged higher for a third consecutive weekly gain, underpinned by Texas, according to the latest report from oilfield services firm Baker Hughes.
The total rig count increased by one unit to 625 the week ending 27 October, but still 143 rigs below the same stage last year, or down 17%.
The oil rig count increased by two to 504 last week, 106 fewer than at the same stage last year, while rigs drilling for gas also dipped by one rig to 117, which was 39 fewer on the year.
Texas accounted for the gains for a third week, increasing three units to 311, coming on top of the 11 additions over the previous two weeks. The Permian Basin, spanning West Texas and New Mexico, added one rig to stand at 313.
US crude output is running at a record 13.2 million bpd according to the latest EIA data, with production from the US shale patch holding up as a second $60 billion North America-focused megadeal was heard in as many weeks – this time between Chevron and Hess, following ExxonMobil's acquisition of Pioneer.
Separately, ConocoPhillips is tipped as a potential suitor for CrownRock, with the private-equity-backed Permian producer valued at somewhere between $10 billion and $15 billion. Several other oil firms are also considering bids.
Meanwhile, US crude oil prices eased back last week following two consecutive weeks of gains, as the conflict in the Middle East has so far not disrupted oil supplies.
NYMEX WTI trading on the Chicago Mercantile Exchange settled on Friday at $85.54/b for the Dec23 contract, down 2.9% on the week.
Front-month Dec23 ICE Brent futures closed at $90.48/b, down 1.8% over the same timeframe.
US natural gas, however, posted solid gains as the Dec23 Henry Hub contract on NYMEX closed Friday at $3.483/mmBtu, up 5.5% with many states set to be hit by an artic blast this week.
