US Oil Drillers Turn Cautious as WTI Holds Near $85 per Barrel

According to new data released by Baker Hughes on Friday, the total number of active drilling rigs for oil and gas in the United States increased to 588, marking a 48 rig rise compared to this same period last year. In particular, the number of active oil rigs climbed by 1 to reach 451, which is 41 rigs above the level from the same time last year. Conversely, the count of gas rigs remained unchanged at 127, up by 3 rigs from last year. Miscellaneous rigs stood at 10, unchanged from the previous year.

The latest data from the Energy Information Administration (EIA) revealed a slight decline in weekly U.S. crude oil production during the week ending July 24. The nation's crude oil production averaged 13.796 million barrels per day (bpd) during this period, a decrease from the previous week's 13.798 million bpd, but an increase of 482,000 bpd compared to a year ago.

The Primary Vision's Frac Spread Count, a gauge of the number of crews completing wells, saw a 2 rig increase during the week ending July 24, reaching 198 crews. This figure rose from a decline of 4 rigs in the previous week. Meanwhile, the number of active drilling rigs in the Permian Basin grew by 2 rigs to 260, just 1 rig above the levels from the same period last year. The count in the Eagle Ford also rose by 2 rigs to 49, indicating a 10-rig increase compared to the same time last year.

Oil prices were on the rise on Friday, with Brent crude trading at $89.95 per barrel, a 1.03% gain. Although Brent is up on the day, it is $6 per barrel lower than it was this time last week. West Texas Intermediate (WTI), on the other hand, also demonstrated an upward trend on the day, trading at $84.67 per barrel, a 1.29% increase.