US Crude Oil Rig Count Didn’t Change in August 28 Week
Crude oil rig count is flat
On August 28, 2015, Baker Hughes published its weekly crude oil rig count report. The data showed that the crude oil rig count didn’t change. It was at 675 rigs for the week ending August 28, 2015—compared to a rise by three to 675 for the week ending August 21, 2015. The crude oil rig count rose for the fifth consecutive week as of August 28, 2015.
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The crude oil rig count rose by 37 rigs in the last six weeks. Likewise, crude oil prices rose more than 15% in the last five trading sessions. The rise in crude oil prices and crude oil rigs benefit oil drillers like Schlumberger (SLB), Superior (SPN), and Halliburton (HAL). The rising crude oil rigs and high crude oil prices also imply that crude oil production will rise in the long term. In the long term, production from Iran and Iraq will also rise. The tug-of-war between supply and demand will influence crude oil prices.
The current crude oil rigs are 900 rigs less than 1,575 rigs in 2014. Crude oil rigs fell more than 50% due to lower crude oil prices since June 2014. Prices fell during this period due to oversupply concerns. Crude oil rigs peaked at 1,609 in October 2014 and bottomed at 628 in June 2015. The volatility in crude oil prices also influences energy ETFs like the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and the Select Sector SPDR Fund ETF (XLE). These ETFs followed the footsteps of crude oil prices in yesterday’s trade. They fell by 5.31% and 3.52%, respectively, at the close of trade on Tuesday.