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Number of Falling Rigs Cannot Stop Oil Price Shocks

Oil rig

Baker Hughes reported a 3-rig decline for oil and gas in the United States this week. The total number of active oil and gas drilling rigs currently reaches 1,076 according to reports, with the number of active oil rigs increasing by 2 to 887 and the number of gas rigs decreasing by 5 at 189.

The number of oil and gas rigs has now risen 147 from this time last year, 138 of which are on oil rigs.

Crude prices slumped on Friday and were set to November as the worst month for oil prices in a decade as fears of oversupply and slowing demand growth took precedence over expectations that OPEC + would agree to limit oil production at meetings on December 6 and 7. .

The WTI benchmark traded down 0.35% (-0.18) at $ 51.27 at 12:42 p.m. EST – $ 4 a barrel a week this week. Brent crude traded down 0.45% (-0.27) at $ 59.64-also down nearly $ 4 a barrel.

Canadian oil and gas rigs for the week declined by 5 rigs this week after gaining 7 rigs last week, bringing the oil and gas rigs to 199, which is 23 rigs less than this time last year, with a 5-rig drop for oil rigs , and the number of gas rigs remained stable for a week.

The EIA estimate for US production for the week ending November 23 continues to weigh on prices, averaging 11.7 million bpd for the third week in a row and the highest production rate for the United States.

At 13:07 EDT, WTI had fallen further into the red, falling 0.43% (- $ 0.22) at $ 51.23 that day. Brent crude traded down 0.52% (- $ 0.31) at $ 59.60 per barrel.

By Julianne Geiger for

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