Baker Hughes released its weekly US oil rig count report on October 27, 2017. It reported that US oil rigs rose by one to 737 on October 20–27, 2017. The rigs fell by 13 or 2% in October 2017—compared to the previous month. It was the biggest monthly fall since May 2016. US crude oil rigs are at the lowest level since June 2017. The rigs slowed due to stalling oil (UCO) (SCO) (UWT) prices in the past few months.
Slowing rigs could slow down the US shale production. Any fall in US crude oil will have a positive impact on crude oil (USO) (OIL) prices. Changes in oil prices impact oil drillers like Transocean (RIG) and Diamond Offshore Drilling (DO).
US crude oil rigs and WTI crude oil prices
According to the EIA (U.S. Energy Information Administration), crude oil rigs in the lower 48 states of the US follow changes in the WTI (West Texas Intermediate) prices with an approximate four-month lag.
US crude oil rigs are near a five-month low. WTI crude oil (DBO) (DWT) prices have fallen 5.6% YTD (year-to-date). Oil rigs would fall more if oil prices fall again. However, WTI crude oil prices have risen 7% in the last three months. It could increase US drilling and production and pressure oil prices.
For the latest updates on crude oil, read US Crude Oil Production and Inventories Pressure Oil Futures. Read These Key Factors Are Driving the US Natural Gas Market for updates on natural gas.