U.S. Rig Count Holds Steady as Oil Prices Surge

The United States maintained its oil and gas drilling rig count for the second consecutive week, according to data released by Baker Hughes on Friday. The total rig count in the country stood at 603, reflecting a 53% increase compared to the same period last year. Of this total, 460 were active oil rigs, marking a 40% rise from the prior year. Gas rigs, however, saw a decrease of one to 132, indicating an 11% rise compared to last year. Miscellaneous rigs remained steady at 11.

Meanwhile, the U.S. crude oil production dipped during the week ending October 16, with the average weekly output dropping to 13.269 million barrels per day (bpd). This was a decline from 13.679 million bpd the previous week and a significant drop of 360,000 bpd from a year ago. The Primary Vision's Frac Spread Count, which estimates the number of crews completing wells, fell for the first time in six weeks, dropping to 199. This was a decrease of four crews from the previous week but an increase of 24% year-over-year.

In terms of drilling activity, the number of active rigs in the Permian Basin remained unchanged at 272, with 22 more rigs than a year ago. In the Eagle Ford, the rig count rose by two to 51, which is eight rigs more than the same time last year. Prior to the data release, oil prices were on the rise, with Brent crude trading at $116.52, up 2.96% or $11 per barrel from the previous week.

Meanwhile, West Texas Intermediate (WTI) was also trading higher at $102.88, up 3.43% or nearly $5 per barrel from the same period last week.