US gas rig count leads second weekly gain: Baker Hughes

Quantum Commodity Intelligence – North American drilling activity nudged higher for a second consecutive week although the gains were again modest, according to the latest report from oilfield services firm Baker Hughes.

The total rig count increased by two to 622 the week ending 24 November, adding to the two extra units in the previous week. This was still 162 rigs below the same stage last year, or down 21%, and near the lowest number of working rigs since February 2022.

However, due to the Thanksgiving holiday, the weekly North America rig count only collected data up until 22 November.

The oil rig count was unchanged at 500 units last week, or 124 fewer than at the same stage last year. Rigs drilling for gas made up the gains, increasing three to 117, or 38 down on the year.

Texas, the largest producing state, was up one rig at 303, while Oklahoma posted the largest gain, adding two drill units.

Meanwhile, US crude oil prices retreated for a fifth consecutive week after Friday’s slump in futures prices eroded slim weekly gains.

NYMEX WTI trading on the Chicago Mercantile Exchange settled on Friday at $75.54/b for the Jan23 contract, down 0.6% on the week.

Front-month Jan23 ICE Brent futures closed at $80.61/b, down 0.4% over the same timeframe.

US natural gas prices remained under pressure as the Dec23 Henry Hub contract on NYMEX closed Friday 3.5% down at $2.96/mmBtu, which was the lowest settle of the year for the Dec23 contract and the weakest front-line price in two months.

Prices were again weighted down by record production levels, high inventories and relatively mild weather for the time of year.