US oil rig count breaks loss streak

The number of rigs extracting crude oil and natural gas in the US rose by one to 632 last week, after falling for nine consecutive weeks, Baker Hughes reported.

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

Crude oil rigs rose for the first time since June to 513, reflecting the addition of one unit in the Permian Basin of Texas and New Mexico – the biggest American oilfield. The total Permian rig count stood at 320 units.

Crude oil prices have jumped in recent weeks on expectations of tight supplies in the year's second half, encouraging producers to increase drilling activity. Front-month ICE Brent contract was trading at $90.75/bbl at 08.00 CDT (13.00 GMT) today, up by $15.83/bbl from the settlement level on 30 June.

The US natural gas rig count declined by one unit to 113 last week, falling for the fifth consecutive week and hitting its lowest since January last year.

The total US rig count is down by 127, or 17% from a year earlier.

By Debarati Bhattacharjee

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