Oil Jumps Back Above $46 As Rig Count Dips For 1st Time In 6 Months

The U.S. oil and overall rig counts dipped last week, snapping 23 straight weeks of increases for each. Meanwhile, the price of oil continued to rally to its highest mark since June 13 by Monday morning.

Id 27806 Oil2

The U.S. active oil and gas rig count declined last week for the first time in six months, while the price of oil had a healthy gain.

Friday's combined U.S. oil and gas rig count provided by oilfield services provider Baker Hughes showed that the current mark is now at 940 β€” down one from a week earlier, up 118.1 percent year-over-year and up 132.6 percent since bottoming out at 404 on May 20 and May 27, 2016. The decline snapped 23 straight weeks that the combined count had increased. Oil rigs comprised 80.4 percent of Friday's total.

The U.S. lost two oil rigs last week, moving its current mark to 756. Like the overall count, last week snapped 23 straight weeks of oil rig count increases. It was just the second time the oil rig count decreased in the past 35 weeks. Its 756 count is up 121.7 percent year-over-year and up 139.2 percent since bottoming out at 316 on May 27, 2016. The current oil rig total is still less than half the 1,600 mark it checked in at on Oct. 10, 2014, but has grown steadily for 13 months.

The U.S. added one gas rig last week, moving its current mark to 184. The active gas rig count is up 106.7 percent year-over-year and up 127.2 percent since bottoming out at 81 on Aug. 5 and Aug. 26, 2016.

The U.S. miscellaneous rig count remained at zero.

The only U.S. states to have rig count changes last week were Texas adding one, while Alaska and Colorado each lost one.

Canada/North America

Canada continued its seasonal rig count recovery last week, adding 19 rigs overall and moving its current total to 189. Canada added 14 oil rigs and five gas rigs. Its combined count is up 148.7 percent year-over-year, with its 112 oil rigs up by 77 and its 77 gas rigs up by 37.

Friday's North American combined rig count of 1,129 is up by 18 from a week earlier. It is up by 622 year-over-year, or 122.7 percent. The Canada combined count has increased for eight straight weeks, adding 109 rigs in that time.

Oil Price Update

After more than a month of decline, the price of WTI Crude oil had a healthy gain last week following reports of a U.S. production decline. Oil opened June 26 at $43.16 and rose each day, closing Friday at $46.04. Friday marked the seventh straight day that the price of oil increased. Oil opened Monday at $46.28 and was at $46.72 as of 8:30 a.m. CT β€” its highest mark since June 13.

More in Economy