U.S. energy companies cut oil rigs for the second week in three as the rig count has stagnated over the past three months along with crude prices.
Source: www.reuters.com
The closely watched U.S. oil rig count by Baker Hughes showed energy companies cut two oil rigs in the week to September 7, bringing the total count down to 860. The rig count has been flat over the past three months, mirroring the crude prices. It rose by one in August after gaining three rigs in July and losing one in June, but is up more than 100 rigs compared to the same week a year ago. Going by the average rigs active (1,016) so far this year, the total count for 2018 is on track to be the highest since 2014, which averaged 1,862 rigs. Higher rig count as well as increased output from wells is expected to drive U.S. crude oil production in 2018 to 1.31 million barrels per day (bpd) to 10.68 million bpd, as per the U.S. Energy Information Administration.
