U.S. Rig Count Recovery Continues As Oil Nears $60

The U.S. brought more rigs online last week for the third straight week following more than three months of decline, while the price of oil on Friday reached its highest price since July 2015.

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The U.S. rig count appears to be back on solid footing as last week was its third-straight week of increase, following more than three straight months of decline. Meanwhile, the price of oil on Friday reached its highest price 28 months.

The U.S. added eight rigs to its total count last week, which was holiday-shortened. The count — from oilfield services provider Baker Hughes — was taken Wednesday instead of the normal Friday. The combined count of 923 was up 330 year-over-year (YoY), or 55.6 percent. Previously, the count had fallen by 42 over a five-week span to a six-month low of 898 on Nov. 3.

The U.S. added nine oil rigs last week, moving its count to 747. That is up 273 YoY, or 57.6 percent. The U.S. lost one gas rig to a count of 176, which is up 58 YoY, or 49.2 percent. The U.S. miscellaneous rig count remained at zero.

Of last week's combined rig count, Colorado, Louisiana, New Mexico and Texas each added one, while Utah lost one.

Canada/North America

Canada's combined rig count increased for a fourth straight week, adding another seven to a mark of 215 — up 23.6 percent YoY. Canada lost two oil rigs and added nine gas rigs, with its 107 oil rigs up by 13 YoY and its 108 gas rigs up by 30.

Friday's North American combined rig count of 1,138 rose by 15, following gains of 13 and 20 in the two weeks prior. Wednesday's count was up by 371 YoY, or 48.4 percent.

Oil Price Update

The price of WTI Crude oil had a considerable increase throughout last week before settling back down some on Monday morning. Oil closed Monday, Nov. 20 at $56.46 and gained $1.25 throughout Tuesday. It closed Wednesday at $57.89 and closed Thursday at $58.45 before reaching a mark of $58.95 at Friday's close — its highest mark since the week of July 1, 2015. Oil opened Monday at $58.69 and had fallen throughout the morning to $57.59 at 9:28 a.m. CT, and was at $57.77 as of 9:39.

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