Rig count hits five-year low

The U.S. rig count continued to slide further even as WTI prices staged a comeback, climbing near $50 per barrel. The total rig count in the U.S. fell 14 rigs this week to 795 total rigs, according to Baker Hughes Industries (ticker: BHI). Rigs are down 69 from the beginning of August, and 814, or 51%, lower than the peak of 1,609 in October 2014.

Rigs targeting oil fell by 9 to 605 continuing a five-week slide and extending a five-year low. Rigs laid down in the Permian Basin in West Texas made up the majority of the losses this week.

The number of rigs drilling for gas also declined by 6 to 189 this week as well.

U.S. offshore rigs increased by 2 from last week reaching 32 total rigs. The offshore rig count is still 26 fewer than this time last year.

Even as rig counts continue to decline, increasing efficiencies in U.S. operations has seen output climb, reports Bloomberg. U.S. crude production rose by 76,000 barrels per day to 9.2 MMBOPD last week, according to information from the Energy Information Administration.

Crude oil inventories rose by 3.1 million to 461 million barrels according to information released by the Department of Energy.

The Canadian rig count rose for the second consecutive week, although just by one total rig, to 180.

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