US oil and gas rig count slipped again
The number of rigs extracting crude oil and natural gas in the US fell by five to 675 last week, Baker Hughes has reported. The total rig count has dropped for 10 out of the last 11 weeks.
PHOTO: Oil field with pump jacks in Bakersfield, US. Getty Images
The number of oil rigs fell by three units to 537 last week, which is the lowest since April last year. The gas rig count fell by two units to 133. There were also five miscellaneous rigs.
The total oil and gas rig count in the Permian Basin in Texas - the biggest US oil field – dropped by five units to 337.
US oil and gas producers have slowed drilling activity in recent weeks as concerns about a looming recession in the country have contributed to dent refinery crude demand and pulled WTI and Brent prices lower. The price of front-month Brent crude has fallen for a record four straight quarters, and declined 6% between the first and second quarter this year.
"Although U.S. oil prices have recovered and ticked up for the past three-straight weeks, it will take more time and sustained WTI prices above $75/bbl for producers to reverse their drilling strategies and add rigs," bank JPMorgan Chase says in a note.
The total US rig count is down by 81 rigs, or 11%, from a year earlier.
By Debarati Bhattacharjee
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