Drillers in the U.S. Add to Oil and Natural Gas Counts in the Week

Drillers in the U.S. Add to Oil and Natural Gas Counts in the Week

A closely followed report on Friday revealed that the U.S. drillers in the week added more oil rigs. Out of twenty six weeks, this is the fifth time that the oil drillers have added to the rig counts this year.

According to Baker Hughes Inc, the energy services firm, ten oil rigs were added in the week till July 8 and that makes the total count 351.

This week, the U.S. crude futures slipped almost eight percent to around $45 per barrel, that's the worst one week decline in the five-months. The drop is mainly blamed on global economic worries. However, prices are expected to move up with oil futures for the rest of this year expected to be lower than $47 with calendar year 2017 pushing it to $50.

In a report this week, analysts at Swiss bank UBS said "We believe the U.S. oil rig count bottomed in late May at around 316 rigs, and expect U.S. oil production to bottom in February 2017 at about 7.735 million barrels per day."

Most rigs were added by producers in the Permian basin in West Texas.

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