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Petroleum industry

Oil Drilling Rigs Rise for First Time in 30 Weeks

Strategic Insights

— 1 min read

The number of active oil drilling rigs in the US increased for the first time in 30 weeks, with 12 rigs added to the total count as of July 2, according to a report from Baker Hughes Inc. This rise in drilling rigs coincides with a decline in crude oil futures prices, which fell for the second consecutive session due to reports of an increase in weekly oil rig count and a jump in US crude stockpiles last week.

Key Takeaways:

  • The number of active oil drilling rigs rose by 12 units to 640 rigs as of July 2, marking the first weekly increase in 30 weeks.
  • Crude oil futures prices declined for the second consecutive session, settling at $56.93 a barrel after trading in a range of $57.95 and $56.65 a barrel on the New York Mercantile Exchange.
  • Brent crude for August delivery gained $0.09 or 0.15 percent to $62.10 a barrel in London.
  • The increase in drilling rigs coincides with a rise in US crude stockpiles last week, leading to concerns about oversupply.
  • Baker Hughes Inc. reported the first weekly increase in 30 weeks, despite a decline in crude oil prices.
  • The US Energy Information Administration (EIA) is expected to release its weekly petroleum status report on July 5, which may provide further insight into the US energy market.

Statistics:

  • The number of active oil drilling rigs rose by 12 units to 640 rigs as of July 2.
  • Crude oil futures prices declined by $0.03, settling at $56.93 a barrel.
  • Brent crude for August delivery gained $0.09 or 0.15 percent to $62.10 a barrel.
  • The first weekly increase in 30 weeks marks a turning point for the US energy market, which had been experiencing declines in drilling activity for several weeks.
  • The increase in drilling rigs may be a response to the rise in US crude stockpiles last week, which led to concerns about oversupply.

Sources:

  • "Rig Count." Baker Hughes Inc., 2 Jul. 2015.
  • "US Crude Oil Inventories Rise 4.37M Barrels." Bloomberg, 30 Jun. 2015.
  • "Brent Crude and London Gasoil Futures Rise Amid Dollar Drought." Bloomberg, 2 Jul. 2015.
  • "US Stock Market." Accotint, 2 Jul. 2015.

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