US Oil Drillers See Pullback as Oil Prices Rise

U.S. oil drillers are anticipating a slowdown as oil prices climb, according to recent data published by Baker Hughes. The total count of active drilling rigs for oil and gas in the United States dropped to 588 this week, marking a 50-rig increase compared to the same period last year. Oil rig activity saw a 3-rig decline, settling at 452 units, a 41-rig rise from the previous year.

Meanwhile, gas rig numbers fell by 1 to 127, a 5-rig increase from the same point last year. Miscellaneous rigs also experienced a minor 1-rig decrease, ending at 9.

Meanwhile, the U.S. crude oil production experienced an uptick during the week up to August 14, according to the latest Energy Information Administration (EIA) data. The weekly U.S. crude oil production averaged 13.830 million barrels per day (bpd), up from 13.805 million bpd the previous week, and a notable 503,000 bpd increase from a year ago.

Moreover, the "Primary Vision's Fric Spread Count," which estimates the number of crews finalizing wells, slipped by 3 in the week ending August 14, dropping to 193 crews. This figure rose by 2 in the week before that. The count of active drilling rigs in the Permian Basin increased by 2 during the reporting period, reaching 267, a 12-rig rise compared to the same time last year.

The count in the Eagle Ford increased by 1 to 50, which is 11 more than this time last year. Oil prices rallied on Friday, with Brent crude trading at $94.23 per barrel, up nearly $7 per barrel from this time last week. Meanwhile, WTI crude also rose on the day to $86.92, a 0.10% gain.