The latest Baker Hughes report reveals a decline in the total number of active drilling rigs in the U.S., which now stands at 552, down 41 from last year. While the count of active oil rigs increased by two to 414, this figure remains 72 below last year’s levels. Conversely, gas rigs decreased by two to 131, although this is still 29 more than the same period last year.

This shift in rig count comes amid a slight drop in U.S. crude oil production, which fell by 10,000 bpd to 13.668 million bpd. Despite the volatility in oil prices, which are currently around $110 for Brent and near $97 for WTI, geopolitical tensions continue to exert upward pressure on the market. The ongoing constraints in the Strait of Hormuz and potential interventions to boost supply highlight the tightness of the physical market.

For professionals in the energy sector, the implications of these trends are significant, particularly regarding supply stability and pricing strategies. I recommend diving deeper into the full article for a comprehensive analysis of these developments and their potential impact on the market.

Source: oilprice.com