Reuters attributes the most recent dip in oil prices to the newest Baker Hughes Rig Count…
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Last week, oil rigs climbed for a fourth straight week, also by 2. In the same time, active horizontal drilling rigs have increased by four.
A spurred by weak knowledge from China’s manufacturing unit slowdown weighed on commodity costs Friday, fueling fears about slowing demand.
Canada, on the other hand, saw its downtrend continue. A year ago, the count ascended to 405 rigs. In contrast, falling rig counts point to a potential stagnation in supplies. This compares to 1382 active rigs counted in July 2014.
The number of U.S. oil-drilling rigs, which is a proxy for activity in the oil industry, has fallen sharply since oil prices headed south past year.
Reflecting plans announced in May and June, when U.S. crude futures averaged $60 a barrel, drillers added 2 oil rigs in the week ended August. 21, bringing the total count up to 674, the highest since early May, oil services company Baker Hughes Inc said in its closely followed report.
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Among major oil- and gas-producing states, North Dakota and Oklahoma each gained three rigs and Alaska, California, Kansas and Wyoming each gained one.
