- REUTERS/Balazs Koranyi
The US oil-rig count spiked by 21 to 652 this week, according to oilfield-services giant Baker Hughes.
That’s the highest total count since the week of September 11, 2015.
The gas-rig count fell by two to 155. One miscellaneous rig was added to the only other one in use, taking the combined count of all rigs up by 20 to 809.
Earlier this week, crude oil prices fell to four-month lows after data from the Energy Information Administration showed that US crude inventories rose more than expected, putting extra pressure on the Organization of Petroleum Exporting Countries to extend its output cuts beyond June.
A deal between OPEC and some non-members to reduce output by 1.8 million barrels per day (bpd) in the first half of 2017 has not done much to reduce global oil stockpiles, as US production remained robust even when faced with falling prices.
The front-month contract for West Texas Intermediate crude oil futures, the benchmark of US prices, was little changed $47.75 after the rig-count release, but headed for a 2% weekly decline.
- Andy Kiersz/Business Insider