Baker Hughes reported that the number of oil and gas rigs in the US fell this week by 1 to 790, with the total oil and gas rigs clocking in at 248 fewer than this time last year. And while it's just a one-rig loss for the week, the downward movement-usually a boost for prices-may unsettle the shaky market further as coronavirus fears mount.
The number of oil rigs decreased for the week, by 1 rig, according to Baker Hughes data, bringing the total to 678-a 165-rig loss year over year.
The total number of active gas rigs in the United States stayed the same according to the report, at 110. This compares to 195 a year ago.
The miscellaneous rig count stayed the same this week as well, for a total of 2 miscellaneous rigs.
Meanwhile, oil production held steady at 13 million bpd for the third week in a row, according to data provided by the Energy Information Administration. The 13 million bpd figure represents a high for the United States.
The number of rigs in the most prolific basin, the Permian, rose by 2 this week to 411, compared to 466 rigs one year ago. The second largest basin, the Eagle Ford, lost two rigs.
The WTI benchmark at 10:36am was trading at $44.77 (-4.93%) per barrel-almost $9 per barrel below last week levels as the COVID-19 outbreak continues to scare the market demand for oil will continue to flounder as travel restrictions between and within countries, and reduced industrial output in China, persist.
The Brent benchmark was trading at $49.76 (-3.81%)-roughly $8 per barrel below last week's levels.
Canada's overall rig count decreased by 4 rigs this week, to a total of 240 rigs. Oil and gas rigs in Canada are now up 29 year on year.
By Julianne Geiger for Oilprice.com
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Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group. More