US Crude Oil Rig Count: Spoilsport for Crude Oil Prices in 2017?
US crude oil rig count
Baker Hughes (BHI) is one of the largest oilfield services companies in the world. On May 26, 2017, it released its weekly US crude oil rig count report. Baker Hughes reported that US crude oil rigs rose by two to 722 between May 19, 2017, and May 26, 2017. The US crude oil rig count has risen for 19 consecutive weeks. US crude oil rigs are at the highest level since April 17, 2015.
Rigs have risen 0.3% for the week ending May 26, 2017—compared to the previous week. Crude oil rigs have risen 128.5% from the same period in 2016.
Interested in DO? Don't miss the next report.
Receive e-mail alerts for new research on DO
Crude oil rigs rose as crude oil (BNO) (USL) (ERY) prices recovered in 2016. The rise in US crude oil rigs could have a positive impact on drilling activity, which would lead to a rise in US crude oil output—it would be negative for oil prices. For more on crude oil prices, read Part 1 and Part 4 of this series.
Peaks and lows
The US crude oil rig count peaked at 1,609 in October 2014. It hit 316 in the week ending May 27, 2016—the lowest level since the 1940s. US crude oil rig count has risen ~128.5% from the lows in May 2016. As of May 26, 2017, oil prices have risen ~90% from their 2016 lows.
International crude oil rig count
Baker Hughes’s international oil rig count excludes data in the US and Canada. It showed that oil rigs rose by 14 rigs to 709 in March 2017—compared to the previous month. The rig count rose 2% month-over-month but fell by ten rigs or 1.4% year-over-year.
Read Trader’s Game Plan: OPEC’s Epic Meeting, Fed, and US Supplies for more on crude oil prices.