US Rig Count Higher As Oil Rally Halts

The number of total active drilling rigs in the United States rose by 2 this week, after an increase of 4 rigs in the week prior, according to new data from Baker Hughes published on Friday.

The total rig count increased to 695 this week—257 rigs higher than the rig count this time in 2021 and the highest count since April 2020. Drilling has picked up substantially since the Russia invasion, adding 45 rigs in the last eight weeks.

Oil rigs in the United States rose this week by 1 rig to 549, while gas rigs rose by 1 to 144. Miscellaneous rigs stayed the same at 2. The rig count in the Permian Basin stayed the same this week at 334, while rigs in the Eagle Ford rose by 1.

US crude oil production rose to 11.9 million bpd during the week ending April 15, according to the latest Energy Information Administration—a 300,000 bpd rise since the Russian invasion of Ukraine.

Oil prices were trending down on the day as bearish market forces such as China’s Covid lockdowns and signs that the EU may have member holdouts that will impede the coalition’s push to fully ban Russian oil outweigh bullish factors such as a lack of progress on an Iran nuclear deal and tight global crude stocks.

WTI was trading at $102.40—down $1.43 (-1.38%) on the day and $4.60 on the week. The Brent benchmark traded at $106.80 per barrel, down $1.48 (-1.37%) on the day and $5 on the week. During the US trading session, at 1:09 pm ET, WTI was trading at $102.20, with Brent at $106.60.