The US oil rig count increased by four to 529 this week, a one-year high, according to oilfield services company Baker Hughes.
The gas rig count increased by three to 135. With one miscellaneous rig remaining in use, the total count rose by seven to 665.
While still well below its level when crude oil prices crashed in 2014, the rebound in the oil rig count showsd renewed confidence among shale producers with higher prices. The count increased by two in the final week of 2016.
US production levels will continue to be closely watched in 2017, especially as OPEC and non-OPEC members implement their agreement to lower output.
OPEC and key non-OPEC members agreed in November to cut production by 1.2 million barrels per day to reduce the global oversupply. According to The Wall Street Journal, Saudi Arabia has cut its productionby at least 486,000 barrels per day to 10.058 million.
- Andy Kiersz/Business Insider