US crude oil rig count  

Baker Hughes (BHI) reported that the US crude oil rig count rose by 17 to 583 rigs between January 27, 2017, and February 3, 2017. The US crude oil rig count rose 28 times in the last 31 weeks. US crude oil rigs are at the highest level since October 2015.

The US crude oil rig count rose 3% week-over-week and 21.2% YoY (year-over-year). Active oil rigs rose as crude oil (FENY) (RYE) (IXC) (IYE) prices recovered from their lows in early 2016. The rise in the crude oil rig count could increase US crude oil production and pressure crude oil prices in 2017. For more crude oil prices, read Part 1 and Part 4 of this series.

US Crude Oil Rig Count Could Impact Crude Oil Prices

Successful implementation of Trump’s energy policies could also increase the US drilling activity, which would be reflected in higher active rigs.

Changes in crude oil (BNO) (XES) (USL) (IEZ) and natural gas (UGAZ) (BOIL) (DGAZ) (UNG) prices impact oil producers and drillers. A rise in US drilling activity would increase US crude oil production. In the short term, it could have a positive impact on companies’ earnings like Schlumberger (SLB), Halliburton (HAL), Rowan Companies (RDC), Devon Energy (DVN), ExxonMobil (XOM), Whiting Petroleum (WLL), and Diamond Offshore (DO).

Peaks and lows 

The US crude oil rig count peaked at 1,609 in October 2014. In contrast, it hit 316 in the week ending May 27, 2016—the lowest level since the 1940s. US drilling activity fell due to lower crude oil prices, which were the result of oversupply. The US crude oil rig count rose 85% from lows in May 2016. As of February 3, 2017, crude oil prices rose 105% from their 2016 lows.

In the next part of this series, we’ll discuss how Iran’s crude oil output impacts the crude oil market.

Latest articles

WeWork is gearing up for an IPO. On Wednesday, the company made its IPO filing with the SEC public and expects to garner $3.5 billion from its IPO.

After FCC Chairman Ajit Pai recommended the approval of the T-Mobile–Sprint merger, Representative David Cicilline urged the FCC to allow public comment.

Cresco Labs (CRLBF) is set to report its Q2 earnings on August 21 after the market closes. The company's stock fell 5.3% yesterday.

Cannabis stocks mostly traded in positive territory today. Supreme Cannabis (FIRE) and Aurora Cannabis (ACB) rose about 9.5% and 5.5%, respectively.

NVIDIA (NVDA) stock soared 6% in today’s trading session as its Q2 earnings for fiscal 2020 beat estimates. However, its guidance missed estimates.

Nio Inc. (NIO) has disrupted the automotive space since 2014 but only made waves in the market since its IPO. Investors have suffered numerous setbacks.