U.S. rig count increases to 414

The U.S. rig count continued to increase this week, according to information from Baker Hughes Inc. The total number of active rigs in the United States reached 414, up six from last week.

Increases were in both oil and gas rigs this week, with BHI reporting three more of each active in the week ended June 10, 2016. Oil rigs reached 328 while gas rigs are now at 85 total in the country.

Slowly recovering oil prices had many concerned that U.S. oil and gas operators might start bringing more production back to the market. The higher oil price appears to have encouraged a few more active rigs, but has also pushed oil prices back down today.

U.S. crude oil benchmark WTI is down over 2% today at $49.31 after both WTI and Brent crude oils broke their three-day streak of gains Thursday. Supply disruptions continue to help balance the market, but concerns over renewed drilling activity in North America may continue to exert downward pressure on prices.

Most of the added rigs this week were in the Haynesville, Mississippian and Williston, each of which reported two new active rigs. The Eagle Ford, Granite Wash and the Utica all reported one additional rig this week as well. The Arkoma Woodford, Cana Woodford, DJ and Marcellus all reported fewer rigs this week than last. The Permian, the most active basin in the U.S., reported no change in its rig count at 142 this week.

Canadian rigs make up majority of increased drilling in North America

The Canadian rig count increased by more than 50% week over week, according to BHI. The total rig count in Canada now stands at 65, up 24 from last week.

Total North American drill rigs now number 479, down 507 from this time last year.

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