US oil and gas rig count slips for third consecutive week

The number of rigs extracting crude oil and natural gas in the US by three to 748 last week, Baker Hughes reported.

PHOTO: Oil field with pump jacks in the US. Getty Images

The US oil rig count fell by two units to 588 last week - the lowest oil rig count since June last year. The natural gas rigs dipped by one to 157.

Crude oil and natural gas producers have been reducing their activity levels as prices by large have gradually traded lower since last November. US drilling activity is likely to be slower through the rest of this year and next year, according to Reuters analyst John Kemp.

However, the US Energy Information Administration (EIA) raised its forecast for crude output growth last week.

The total rig count in the Permian Basin in Texas - the biggest US oilfield – was up by three units to 356.

Compared to a year earlier, the total US oil and gas rig count was up by 55 rigs, or about 8%.

By Debarati Bhattacharjee

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