US Oil Count Plummets amidst Surge in Oil Prices

The United States oil and gas rig count fall as prices of oil surge in the international market

Baker Hughes has reported a significant decrease in the number of active oil and gas in the United States of America in the second week of 2019. It was revealed according to the report by Baker Hughes that the total number of active oil and gas drilling rigs reduced by 25 rigs as the number of active oil rigs decreased to 852, reducing by 21 rigs. The number of gas rigs also decreased by 4 to reach 198. However, it is worth noting that the oil and gas rig count is currently 114, an increase from 105 recorded this time last year.

The extension of an offer to US negotiations by China in a bid to boost imports from the US through 2024 by 1 trillion annually has been attributed to increase in the prices of WTI, which traded significantly high on Friday.

At 12:13pm EST, the WTI benchmark traded at $53.85, a $1.49 increase (+2.85%) —up roughly $2 week on week. Brent crude on the other hand was trading up $1.47 (+2.40%) at $62.65 per barrel, an increase of almost $2 week on week.

The story was a bit different just on the other side of the border as the oil and gas rigs in Canada increased by 25 rigs, climbing by 108 rigs. The country’s total oil and gas rig currently stands at 209, which is 116 fewer than what the country boasted of 12 months ago with all the additional 25 rigs being oil rigs. The increase in Canada’s rigs is particularly remarkable as it occurred amidst the country’s new mandate calling for the collective shaving of 300,000 bpd off its crude oil production figures, a mandate that went into effect at the start of the month.

The EIA estimated an increase in the production of the United States for the week ending January 11 at an average rate of 11.9 million bpd­ for the week—another new record for the country.

WTI also increased by 2.98% (+$1.56) at $53.92 on the same day by 1:29pm EDT, while the Brent crude traded as high as $62.62 per barrel, a 2.35% increase ($1.44).

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