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The Rig Count Collapse Continues Into The New Year

Julianne Geiger

2020 is starting off with more rig losses, according to Baker Hughes, with the US oil and gas rig count falling by 9 rigs for the week. The total oil and gas rig count is now 279 down from this time last year at a total of 796 rigs.

For oil rigs, this week saw a decrease of 7 rigs, according to Baker Hughes data. The total number of active gas rigs in the United States fell by 2 according to the report, to 123. This compares to 198 a year ago. 

The US shed a total of 207 oil rigs throughout 2019, while production grew from 11.7 million bpd at the beginning of the year to the all-time high of 12.9 million bpd­ for week ending Dec 20, the last week for which there is data.

Oil prices were up sharply on Friday after the US forces in Iraq assassinated Iranian military leader and hardliner Qassem Soleimani, who the US saw as behind the attacks on Saudi Aramco’s oil infrastructure in September 2019.

The WTI benchmark at 10:00am was $63.34 per barrel, up $1.83 from this time last week, and up $2.16 (+3.53%) on the day. The Brent benchmark was trading up at $68.66. up $2.07 per barrel from last week and up $2.41 (+3.64%) on the day.   

Canada’s overall rig count decreased this week, with oil and gas rigs falling by 14, on top of last week’s 50-rig decrease. Oil and gas rigs in Canada now stand at just 85, up 9 year on year. 

At 7 minutes past the hour, WTI was trading at $62.60 and Brent was trading at $68.20.

By Julianne Geiger for Oilprice.com

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