The number of active drilling rigs in the U.S. increased this week, according to Baker Hughes, bringing the total to 562, a slight decline from last year. The active oil rig count rose by four to 429, although this figure is still 22 rigs lower than the same period last year. Meanwhile, the gas rig count remained steady at 125, marking a year-over-year increase of 16.

This uptick in drilling activity coincides with a rise in U.S. crude oil production, which averaged 13.702 million barrels per day, just shy of its all-time high. However, oil prices have been pressured downward, with Brent crude trading at $91.99 and WTI at $87.85, both reflecting significant weekly declines amid speculation of a potential U.S.-Iran deal that could influence supply dynamics.

For market professionals, the increase in drilling activity could signal a rebound in domestic production capacity, but the recent price drop may indicate market concerns about oversupply or geopolitical developments impacting oil prices.

Source: oilprice.com