The U.S. rig count is still down 411 from the same time a year ago.
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Friday’s data come right after crude oil slipped into a bear market – defined as a 20% drop from recent highs – amid renewed concerns about the high level of U.S. inventories.
Last week the oil-rig count climbed by 14 to 371, while the total rig count increased by 15 to 462.
A similar price rally previous year to over $60 in May-June spurred drillers to add 47 rigs in July to August. Schlumberger said last week they believe the worst was over for the oil downturn, while Halliburton indicated that they expect a modest uptick in the rig count during the second half of 2016.
But that return to the well pad was shortlived as prices fell to 12-year lows near $26 by February, resulting in the rig count tumbling by 359 between September 2015 and May 2016. “However, that is with all of the caveats about oil prices, which must stay at or above the current level”, Williams said.
Industry followers have been calling for a continued uptick in USA oil rigs, including Piper Jaffray analysts who said last week that the count will build at a pace similar to that seen in recent weeks despite persisting lower oil prices following Brexit.
Oil futures continued their climb Friday even after data from Baker Hughes revealed a weekly rise in the number of active US rigs drilling for oil-the fifth increase in a row.
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In all, the North American rig count jumped by 18 this week to 582.
