U.S. producers continue to put rigs back to work, weakening prices
Oil prices were down today as U.S. producers continue to ramp up production and put more rigs back to work, and markets remain concerned about whether or not OPEC will be able to reach a production agreement. U.S. crude oil benchmark WTI was down over 1% while international crude oil benchmark Brent was down nearly 1.5% as Baker Hughes Industries (ticker: BHI) reported 12 more rigs were back to work for the week ended November 4, 2016. The additional rigs brought the total number of rigs active in the United States to 569, still 202 fewer than were active this time last year.
Source: Bloomberg WTI 5-day price
The number of rigs drilling for oil was up by nine this week, bringing the total to 450, while those drilling for gas increased by three for a total of 117. Both oil and gas rigs are down from this time last year when their totals stood at 572 and 199, respectively.
The Permian continues to see the most activity by far of any of the basins tracked by Baker Hughes, with 218 rigs reported this week, six more than last week. The Eagle Ford and Williston each reported two additional rigs this week, while the Akroma Woodford, DJ and Haynesville each added one. The Cana Woodford is currently the only basin in the U.S. with more rigs currently drilling than at this time last year with 41, unchanged from last week and nine more than in 2015.
Source: Baker Hughes
