U.S. energy firms this week reduced the number of oil rigs operating to their lowest in nearly a year, cutting the most rigs in a quarter in three years despite a 30 percent hike in crude prices so far in 2019.
Source: in.reuters.com
Despite a 30% jump in crude prices so far in 2019, U.S. energy companies continue to reduce the number of oil rigs. In the week to March 29, drillers cut eight oil rigs, bringing the total count down to 816, the lowest since April 2018. This is the sixth consecutive weekly decline since May 2016 when it fell for eight consecutive weeks. For Q1 2019, the rig count fell by 69, the most in a quarter since the first quarter of 2016 when it fell by 164 rigs. For the month, the rig count fell by 37, the most in a month since April 2016 when it declined by 40 rigs. However, the rig count is still higher than a year ago period when 797 rigs were active after energy companies boosted spending in 2018 to capture higher prices that year.
