The US Crude Oil and Nat Gas rig count increased last week for the 1st time since March, with energy firms adding the most drill rigs in 7 months, as shale producers start drilling again now that Crude Oil prices have recovered from their lows.
The Crude Oil and Nat Gas rig count, an early indicator of future output, rose 10 from a record low to 254 in the wk to 21 August energy services firm Baker Hughes Co (NYSE:BRK) said in its closely followed report on Friday.
Prior to this week, the rig count hit records lows for 15 wks.
US Crude Oil rigs rose 11 to 183 last wk, their biggest rise since the week to 17 January, Nat Gas rigs fell by 1 to 69, just one short of its record low.
More than 50% the US Crude Oil rigs are in the Permian basin in West Texas and eastern New Mexico where total units rose 10 to 127 last wk from a record low of 117 the prior wk, according to Baker Hughes data going back to Y 2011. That was the biggest weekly gainer in the Permian rig count since December.
US Crude Oil prices have jumped over 120% from April the record lows spurred by coronavirus chaos demand destruction, but are still down about 32% YTD.
Friday, futures were trading around 42bbl on predictions global economies and energy demand will snap back as governments lift lockdowns.
Have a healthy weekend, Keep the Faith!