U.S. drillers add oil and fuel rigs for ninth week in a row -Baker Hughes
Jan 22 (Reuters) – U.S. power corporations this week added oil and pure fuel rigs for a ninth week in a row amid larger power costs over the previous few months.
The oil and fuel rig rely, an early indicator of future output, rose 5 to 378 within the week to Jan. 22, its highest since May, power companies agency Baker Hughes Co mentioned in its intently adopted report on Friday. RIG-USA-BHIRIG-OL-USA-BHIRIG-GS-USA-BHI
Regardless of beneficial properties in latest months, that rely continues to be 416 rigs, or 52%, beneath this time final yr. The overall rely, nevertheless, has soared since hitting a file low of 244 in August, in keeping with Baker Hughes knowledge going again to 1940.
U.S. oil rigs rose two to 289 this week, their highest since May, whereas fuel rigs rose three to 88, their highest since April, in keeping with Baker Hughes knowledge.
U.S. crude futures had been buying and selling round $52 per barrel on Friday. That’s simply shy of the close to $54 excessive hit final week, which was the contract’s highest since February 2020.
Trying ahead, nevertheless, U.S. crude futures had been buying and selling decrease at round $51 a barrel for the steadiness of 2021 and $49 for calendar 2022, which may immediate producers to scale back exercise sooner or later.
Simmons Vitality, power specialists at U.S. funding bank Piper Sandler, forecast the U.S. rig rely would fall from an annual common of 433 in 2020 to 369 in 2021 earlier than rising to 567 in 2022.
That’s the similar as Simmons forecast since mid December. (Reporting by Scott DiSavino Modifying by Marguerita Choy)