Oil rigs down, Permian Remains Resilient.
In 2016, the oil rig count staged a comeback not seen since the most recent oil crash. The count of oil rigs rose last week to the highest level in one year, as demand for oilfield-services equipment increased with oil prices. This week, the total oil rig count finally fell after increasing for eleven consecutive weeks. The decline was spread across multiples basins but was made up of all vertical rigs. Several new horizontal and directional rigs were added during the week.
U.S. crude posted its first weekly loss in five weeks on lingering doubts over the extent of OPEC cuts, with sentiment worsened by concerns over the economic health of the world’s second-largest oil consumer China.
U.S. West Texas Intermediate (WTI) crude futures settled down 64 cents to $52.37. Meanwhile, Brent crude futures, the international benchmark for oil prices, closed down 56 cents at $55.45.
“I think the bigger issues for oil are less about demand right now and a lot more about the supply condition,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle.
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Compiled and Published by GIB KNIGHT
Gib Knight is a private oil and gas investor and consultant, providing clients advanced analytics and building innovative visual business intelligence solutions to visualize the results, across a broad spectrum of regulatory filings and production data in Oklahoma and Texas. He is the founder of OklahomaMinerals.com, an online resource designed for mineral owners in Oklahoma. ☞Email:email@example.com