Crude Oil Shrugs Off First Oil Rig Count Rise in 7 Months
On Thursday, July 2, Baker Hughes (BHI) disclosed the US rig count at 12 PM. WTI crude oil fell 0.14% to $57.42 following the news.
In the week ending July 2, 2015, the US offshore rig count rose by one to 29—compared to the previous week. They’re more expensive than onshore wells.
During the week ending July 2, 2015, the US land-based, or onshore, rig count rose by two from the previous week’s count. Last week, there were 833 onshore rigs.
According to oil service company Baker Hughes (BHI), the horizontal rig count rose by three in the week ending July 2, 2015—the first rise in eight months.
Currently, there are 640 working oil rigs in the US. The Permian Basin has 231 of the rigs. Its oil rig count rose by one in the week ending July 2.
For the week ending July 2, among the key shale rigs, crude oil rigs rose by three in the Eagle Ford Shale and two in the Williston Basin.
In the US, there were 219 natural gas rigs operating in the week ending July 2—nine less than the previous week. Rigs fell by 109 since the beginning of the year.
Baker Hughes (BHI) reported that the weekly US crude oil rig count rose by 12, from 628 to 640, in the week ending July 2—the first rise in 29 weeks.
In the week ending July 2, the US rig count rose by 12 active crude oil rigs—partially offset by a fall of nine natural gas rigs.
According to Baker Hughes, there were 862 active oil and gas rigs in the US in the week ending July 2—three more than the previous week ending June 26.
The current momentum could swing natural gas prices in the either direction. The bears say that gas prices could test the support of $2.50 per MMBtu.
The consensus of warmer weather and improving demand may continue to boost natural gas prices. This might slow down the natural gas rig count.
Natural gas inventories slowed down for the fourth consecutive week. The improving demand due to warmer weather might have led to the slowdown.
Natural gas futures contracts for August delivery rose by 1.44% on Thursday. Natural gas prices settled at $2.82 per MMBtu on July 2, 2015.
Bullish sentiment and strong summer holiday demand could push oil prices higher. The key resistance for crude oil prices is seen at $66 per barrel.
Baker Hughes (BHI) released its weekly oil and gas rig report on July 2, 2015. For the week ending July 3, crude oil rigs rose massively by 13 to 641.
US commercial crude oil stocks rose by 2.4 MMbbls to 465.4 MMbbls for the week ending June 26, 2015. This will also add pressure to oil prices.
August WTI crude oil futures trading in NYMEX fell marginally by 0.05% and closed at $56.93 per barrel on Thursday, July 2, 2015. Prices traded almost flat.
The Alerian MLP ETF (AMLP) ended its two-week losing streak on Thursday, July 2. It rose 1.10% yesterday. It has returned -11.02% YTD.
Tallgrass Energy Partners (TEP) was the top loser among the midstream MLPs in yesterday’s trade. It fell 1.95%. It has returned 6.67% YTD.
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