US rig count posts fourth week of gains: Baker Hughes
Quantum Commodity Intelligence – North American drilling activity edged higher for a fourth consecutive week although the gains were again modest, according to the latest report from oilfield services firm Baker Hughes.
The total rig count increased by just one unit to 626 the week ending 8 December, the first time there have been four consecutive increases since November last year. However, the combined number from the four weeks is just eight units, while the count is still 154 rigs below the same stage last year, or down 20%.
But oil rigs eased by two units to 503 units last week, or 122 fewer than at the same stage last year. Rigs drilling for gas increased by three to 119, or 34 down on the year.
Texas, the largest producing state, was up two rigs at 308, while Louisiana posted the biggest gains with three new rigs to take the state's total to 44. The Permian Basin, spanning West Texas and New Mexico, added three rigs to stand at 299.
However, the latest EIA showed data showed total crude output easing by 100,000 bpd to 13.1 million bpd amid slowdowns from the Anadarko, Appalachia, and Eagle Ford regions.
Meanwhile, US crude oil prices retreated for a seventh consecutive week amid concerns that OPEC+ cuts will not be deep enough to offset concerns over an oil demand-growth slowdown in Q1.
NYMEX WTI trading on the Chicago Mercantile Exchange settled on Friday at $71.42/b for the Jan23 contract, down 3.55% on the week.
Front-month Feb23 ICE Brent futures closed at $76.14/b, down 3.45% over the same timeframe.
US natural gas prices continued to drop as the Jan24 Henry Hub contract on NYMEX lost another 8% last week, closing at $2.58/mmBtu, with the Jan24 sliding around 30% since the start of November.
Record production levels and high inventories continue to offset record LNG exports expected in December, while domestic demand remains subdued amid seasonally mild weather.
