Baker Hughes’ latest rig count report shows the number of rigs drilling for oil rose by two this week to 452. Rigs drilling for natural gas was down 2. The total rig count fell by one to 568, still higher than the May low of 404. Total offshore rigs are down 12 from last year at this time.
States losing rigs include Alaska and North Dakota with two each, and New Mexico, Oklahoma, Pennsylvania, and Utah each lost 1 rig.
The price of crude oil dropped, however, after a report from the Organization of Petroleum Exporting Countries (OPEC) showed a jump in production. Many analysts predict that the price of benchmark crude will not rise significantly without a cut in OPEC production. West Texas Intermediate (WTI) oil futures fell 2 percent to $43.75, according to Business Insider, which is the lowest level in almost two months.
Market Realist reported that natural gas prices fell 4 percent year-to-date, noting the negative impact on drilling activity. A drop in prices is due to oversupply in the market. Market Realist notes that drilling activity could rise with the new Trump Administration.