More good news came in today for the oil bulls as Baker Hughes reported a 8-rig decrease for oil and gas in the United States this week.
The total number of active oil and gas drilling rigs now stands at 1,075 according to the report, with the number of active oil rigs decreasing by 8 to reach 877 and the number of gas rigs holding steady at 198.
The oil and gas rig count is now 151 up from this time last year, 135 of which is in oil rigs.
WTI prices were up on Friday following despite a rather bleak EIA report that showed substantial gasoline and distillate inventory builds. The upward price movement for both benchmarks comes on new optimism that the United States and China trade war will simmer down after China said it would hold trade talks with the US.
At 12:18pm EDT, the WTI benchmark was trading up $1.12 (+2.38%) at $48.21, with Brent crude trading up $1.32 (+2.36%) at $57.27 per barrel.
Canada’s oil and gas rigs for the week increased by 6 rigs this week, a figure that pales in comparison to the 100 rigs or so that were lost in the last three weeks. Canada’s total oil and gas rig count is now 76, which is 98 fewer rigs than this time last year, with a 5-rig increase for oil rigs, and a 1-rig increase for gas rigs for the week.
The EIA’s estimates for US production for the week ending December 21 is still keeping a lid on prices, fighting OPEC’s production cuts every step of the way. US production averaged 11.7 million bpd for the week.
By Julianne Geiger for Oilprice.com
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