U.S. energy firms this week increased the number of oil rigs operating for the first time this year but the rig count in January fell the most in a month since April 2016, as the boom in the Permian, the nation’s biggest shale oil formation, cools.
Source: in.reuters.com
According to data from energy services firm Baker Hughes, for the week to Jan. 25, U.S. Companies added 10 oil rigs. This report brings the total count to 862 compared to 759 rigs in the year ago period. However, for the entire month of January drillers cut 23 rigs, the most since April 2016. This is in line with drillers’ plan to cut rigs in 2019 amid forecasts for lower crude prices than last year. As per energy specialists Simmons & Co, the average combined oil and gas rig count will fall from 1,032 in 2018 to 999 in 2019 before rising to 1,087 in 2020.
