US weekly rig count higher as Texas jumps by five units, WTI prices sink
Quantum Commodity Intelligence - North American drilling activity increased for the fourth time in five weeks during the week ending October 14, oilfield services firm Baker Hughes reported.
The total weekly rig count was up by seven units to 769, with the number up 226 from the 543 at the same time in 2021 and the highest volume since March 2020.
The number of rigs dedicated to crude was up by eight units, standing at 610, while the number of rigs drilling for natural gas eased by one to stand at 157.
Texas jumped by a robust five units to 365, up 115 on the year, while the Permian Basin edged up one to 346, an increase of 79 on the year. Permian, which is spread across west Texas and New Mexico, produced around 5.3 million barrels per day in September.
The Energy Information Administration (EIA) said US crude oil production will average 12.4 million bpd in 2023, down from a forecast of 12.6 million bpd last month, as the economic downturn and regulatory hurdles hit investment appetite.
In its latest weekly inventory report the EIA pegged US commercial crude stocks at 439 million barrels, up 9.9 million barrels on week. Strategic Petroleum Reserves stood 409 million barrels, down 7.7 million barrels on week and the lowest SPR figure in four decades.
Prices
In the week ending 14 Oct. US benchmark WTI prices retreated sharply as recessionary fears, soaring inflation and likely further Federal Reserve interest rate hikes dampened both US and global oil prices.
NYMEX WTI trading on the Chicago Mercantile Exchange settled Friday at $86.61/b for the Nov22 contract, down 6.5% and wiping out around half of the gains from the previous week when WTI climbed over 16% as OPEC+ announced a headline cut of 2 million bpd from November.
Over the same week, front-month Dec22 ICE Brent futures closed at $91.63/b, also down around 6.5% on the week.
Earlier this month US oil industry groups warned the Biden administration that a flagged ban on refined product exports would result in higher consumer prices, disrupt global markets and damage US national security and geopolitical standing.
