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The U.S. continues to lay down rigs drilling for oil

The number of rigs active in the U.S. continued to drop this week as markets continue to balance the oversupply in global oil output. The total number of rigs drilling in the U.S. declined for an eighth straight week as rigs targeting oil continued to come offline, according to the Baker Hughes (ticker: BHI) rig count.

Rigs drilling for oil fell by ten this week, continuing the trend for the seventh week, to a total of 595. The active number of oil rigs is now 63% lower than its year-ago level of 1,590.

Gas rigs saw a slight uptick this week after three weeks of decline, reaching a total of 192 from last week’s 189. Total gas rigs are just 41% lower than their year-ago level.

Fewer active rigs have helped to bolster oil prices, which were up over 2% at 2:25 EST. U.S. benchmark WTI crude oil broke above $50 per barrel October 12, but fell lower following the release of OPEC’s monthly oil report, which showed OPEC production at a three-year high. OPEC’s higher production offset lower output from non-OPEC producers last month as well, reports the International Energy Agency (IEA).

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