U.S. rig count hits 415

The rig count in the United States continued to decline last week, with Baker Hughes reporting just 415 active rigs. The active rig count for the week ended April 29, 2016, was down 16 rigs from the previous week, representing a 4% decline in overall active rigs, and the nineteenth consecutive week of declines.

Rigs targeting oil and those targeting gas were both down in the most recent report. Oil rigs fell to just 328, down eight from the week before, while the total number of rigs drilling for gas fell by one to 86.

Most of the rigs laid down last week were in the Eagle Ford, which reported three fewer rigs. The DJ, Utica and Williston all reported one fewer rig as well. The Permian, which in weeks past has been the basin to report the largest declines in rig counts, reported five additional rigs. The total number of rigs in the Permian is now 139, down 98 from this time last year.

The rig count continues to fall as storage facilities across the U.S. report more crude oil inventory builds. Even as production in the U.S. rolls over, the DOE reports inventory builds that exceed economist estimates and add bullish sentiment to the markets. This week, crude oil inventories rose by 2.8 MMBO, five times the average estimate.

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