US Oil-Rig Count Rises for Fifth Consecutive Week

In the same time, active horizontal drilling rigs have increased by four. Here’s last week’s chart, showing that the oil rig count is perking up; the count has climbed in six out of the last seven weeks. As of August 21, the United States had 885 active rigs, one more than last week. At 456.2 million barrels, U.S. crude oil inventories stay close to ranges not seen for this time of yr in a minimum of the final 80 years.

Canada, on the other hand, saw its downtrend continue. In contrast, falling rig counts point to a potential stagnation in supplies. After declining roughly 1 percent, month-over-month, in June, July saw a 2.44 percent tumble in the count, which now stands at 1118 rigs.

Oil rig counts are used as a leading demand indicator for products consumed in the drilling, production and processing of hydrocarbons, according to Baker Hughes. The number of natural gas rigs fell by 110, or ~34%, over this period.

The report also differentiates between oil and gas rigs.

U.S. oil prices headed for their eighth consecutive week of declines on Friday, the longest losing streak since 1986, after a sharp drop in China manufacturing increased worries over the health of the world’s biggest energy consumer.