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. They also climbed by 2 last week.
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We’ll be back at the top of the hour with the latest rig count data and the oil price reaction.
Reuters attributes the most recent dip in oil prices to the newest Baker Hughes Rig Count and a decrease in Chinese manufacturing.
“Balances point to further oversupply throughout 2015, begging the question how low can oil go?” Prices edged up above $40 shortly thereafter.
Oil moved into a bear market in July, and the biggest producers are preparing for an extended downturn. Here’s last week’s chart, showing that the oil rig count is perking up; the count has climbed in six out of the last seven weeks.
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The U.S. rig rely peaked at four, 530 in 1981 and bottomed at 488 in 1999.
