U.S. energy firms this week reduced the number of oil rigs operating for the second week in a row, with the rig count at its lowest since March 2018, as some drillers follow through on plans to cut spending.
Source: www.reuters.com
In the week to May 17, U.S. energy companies cut three oil rigs, bringing the total count down to 802, below the 844 units operating a year ago, energy services firm Baker Hughes said in its closely followed report on Friday. Despite these cuts, U.S. oil output from seven major shale formations is expected to rise to a fresh record high of 8.49 million barrels per day in June, as per Energy Information Administration (EIA). Meanwhile, U.S. crude futures were trading around $63 per barrel on Friday, putting the contract on track to rise almost 3% for the week as supply cuts and concern over potential further disruption to Middle East shipments.
