29182
US Rigs Cut for 9th Week
Energy

US Rigs Cut for 9th Week

US energy firms cut oil rigs for a ninth week in a row this week, increasing the pace of reductions from recent weeks, data showed on Friday, a sign low prices continued to drive drillers away from the well pad.
Drillers removed 16 oil rigs in the week ended Oct. 30, bringing the total rig count down to 578, the least since June 2010, oil services company Baker Hughes Inc said in its closely followed report, Reuters reported.
That is about a third of the 1,582 oil rigs operating in same week a year ago. Over the last nine weeks, drillers cut 97 oil rigs.
Although US oil futures have averaged $45 a barrel so far this week, the same as last week, the December contract was on track for its first weekly gain in three weeks despite a supply glut that has tested storage capacity and hammered oil company results.
Energy traders noted the rate of oil rig reductions over the prior few weeks, about seven on average, was much lower than the 19 rigs cut on average over the past year since the number of rigs peaked at 1,609 in October 2014, due in part to expectations of slightly higher prices in the future.
With the decline in oil rigs this week, the total oil and gas rig count remained at a 13-year low despite an increase of four gas rigs, according to Baker Hughes.
The pace of those reductions, however, has picked up this week. US crude futures for next year were trading on average over $49 a barrel, according to the full year 2016 calendar on the New York Mercantile Exchange.
Higher prices encourage drillers to add rigs. The most recent time crude prices were much higher than they are now was in May and June when US futures averaged $60 a barrel.
In response to those higher prices, drillers added 47 rigs over the summer even though crude prices had declined to $47 a barrel on average by the time July and August rolled around.

 

Short URL : http://goo.gl/oWbBBb
  1. http://goo.gl/CStSwO
  • http://goo.gl/umnUCZ
  • http://goo.gl/FMoFqm
  • http://goo.gl/8gbvyB
  • http://goo.gl/UMwLih

You can also read ...

China Rejects US Sanctions, Vows to Continue Iran Crude Purchase
As the US and Iran continue to trade barbs over the...
India Vying for US Waiver
India, the second biggest crude customer of Iran, may cut its...
Venezuela Braces for Pricey Gasoline
Gasoline prices in Venezuela will soon catch up with world...
Zanganeh to Attend OPEC, Non-OPEC Committee Meeting
Iran's Oil Minister Bijan Namdar Zanganeh will attend a...
S. Korea Iran Crude Imports Up 15%
South Korea’s imports of Iranian crude rose around 15% in July...
Indonesia Cuts Oil Imports
Indonesia’s PT Pertamina will get an extra 225,000 barrels per...
UK's Quercus Halts Iran Renewable Project
British renewable energy investor Quercus said it will halt...
NPC Not Worried About Exports
The National Petrochemical Company is not concerned about...

Trending

Googleplus