U.S. energy firms this week cut the number of oil rigs operating for a third week in a row to the lowest level in 10 months as independent producers follow through on plans to cut spending even though oil majors plan to spend more.
Source: www.reuters.com
For the week ending March 8, U.S. oil companies cut 9 rigs, as per weekly data from Baker Hughes. These results bring the total rig count down to 834 and is the third consecutive weekly decline. This count is the lowest level since May as independent E&P companies cut spending as they focus on earnings growth instead of increased output with crude prices projected to decline this year versus 2018. However, the rig count is still higher than a year ago when 796 rigs were active after energy companies boosted spending in 2018 to capture higher prices that year.
