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Brutal 20-Week Rig Count Collapse Finally Subsides As Oil Prices Stabilize

Baker Hughes reported on Friday that the number of oil rigs fell, while the combined oil and gas rig count in the US held steady this week at 251, marking the end to the brutal 20-week slide.

The total oil and gas rigs are down by 691 compared to this time last year.

The number of oil rigs slipped for the week by 1 rig, according to Baker Hughes data, bringing the total to 180, in stark contrast to the 770 active oil rigs this time last year.

The total number of active gas rigs in the United States rose this week by 1 rig, landing at 69 total rigs. This compares to 171 rigs a year ago.

To compare active rigs with supply figures, the EIA’s estimate for oil production in the United States stayed the same for the week ending July 24—the last week for which there is data, at 11.1 million barrels of oil per day. Oil production in the United States is still 2 million bpd less than its all-time high.

Canada’s overall rig count rose this week by 3, reaching 45 active rigs. Oil and gas rigs in Canada are now down 92 year on year. 

Oil prices were trading up on the day on Tuesday morning on a significant inventory draw earlier in the week, but the rise was capped due to fears of stalling oil demand recovery and the economy in general as new coronavirus cases continue to prompt additional lockdowns and stricter containment measures.

At 11.48 am EDT, WTI was trading up 0.05% at $39.94—roughly $1 down on the week but set to close up on the month. Brent was trading up $0.24 at $43.18, nearly $0.50 more than this time last week, and an increase of 0.56% on the day. 

At 1:09 pm, WTI was trading at $39.85 per barrel, with Brent changing hands at $43.14 per barrel.

By Julianne Geiger for Oilprice.com

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