US rig count steadies after Texas bounce: Baker Hughes
Quantum Commodity Intelligence – North American drilling activity snapped an eight-week losing streak but the count remains sharply lower on the year, according to the latest report from oilfield services firm Baker Hughes.
The total rig count nudged up by one unit to 632 the week ending 8 September, 127 rigs below the same stage last year, or down 17% and hovering close to 20-month lows.
The oil rig count edged up one to 513, which was 78 fewer than at the same stage last year, while rigs drilling for gas dipped by one to 113, 53 fewer on the year.
Texas led the gains adding four units to 310 and is now 49 fewer than a year ago, while the Permian Basin, spanning West Texas and New Mexico, added one rig, edging up to 320 but down 20 from year-ago levels.
Latest figures from the Energy Information Administration put US crude production stable for a third straight week at 12.8 million bpd, the highest since early 2020.
North of the border, Canada's rig count fell by five to 182, for a drop of 23 units on the year.
Baker Hughes said the international count retreated by six rigs to 952 but is up 92 on the year amid a boom in offshore exploration.
Meanwhile, NYMEX WTI trading on the Chicago Mercantile Exchange settled on Friday at $87.51/b for the Oct23 contract, up over 2.3% on the week.
Front-month Oct23 ICE Brent futures closed at $90.65/b, up 2.35% over the same timeframe.
US natural gas was higher over the week as the Oct23 Henry Hub contract on NYMEX closed at $2.605/mmBtu for a drop of 6%,
North American gas prices broadly failed to follow the global trend of higher LNG prices after staff with Chevron Australia voted for strike action which is expected to curb gas supplies, as heavy production levels continued to weigh on the US.
Warmer-than-average temperatures across the United States also deferred natural gas consumption for space heating during the shoulder season, while hurricane-related demand disruptions continue to pose a downside risk.
