US Rig Count Rises as Hormuz Transit Resumes
The total number of active drilling rigs for oil and gas in the United States increased this week, according to the latest data released by Baker Hughes. The U.S. rig count now stands at 573, marking a rise of 26 rigs compared to the same period last year.
During the most recent reporting period, the number of active oil rigs grew by 7, reaching 440 rigs, which is 8 higher than the previous year. Concurrently, gas rigs saw an increase of 3 to total 125 rigs, representing 16 more than last year. The count for miscellaneous rigs remained steady at 8.
Data from the U.S. Energy Information Administration (EIA) also showed that weekly U.S. crude oil production edged upwards in the week ending June 19. Production averaged 13.819 million barrels per day (bpd), up from 13.806 million bpd the previous week and an increase of 384,000 bpd compared to a year earlier.
In terms of regional rig activity, the Permian Basin saw its rig count rise by 2 to reach 258, though this remains 12 rigs fewer than the prior year. The Eagle Ford basin held steady at 44 rigs, maintaining a position 3 rigs above last year’s levels.
Primary Vision’s Frac Spread Count, which estimates the number of crews completing wells, remained consistent at 192 crews for the week ending June 19.
Despite the growth in rig counts and production, oil prices declined on Friday. Brent crude was trading at $71.90 per barrel, down 4.46%, while West Texas Intermediate (WTI) stood at $69.43 per barrel, down 3.82%. Brent experienced a weekly loss of around $15 per barrel.
The increases in active rigs have come amid a resumption of tanker traffic through the Strait of Hormuz, a critical route for global oil supply. This development has brought cautious optimism to the oil markets, reflecting improving supply dynamics in the Gulf region.
Overall, the rise in active rigs signals sustained confidence among U.S. producers despite recent market volatility and geopolitical uncertainties affecting the energy sector.