US rig count higher, led by crude activity: Baker Hughes

Quantum Commodity Intelligence – North American drilling activity nudged up for the first time this month but the rig count remains sharply lower on the year, according to the latest report from oilfield services firm Baker Hughes.

The total rig count increased by two to 618 the week ending 17 November, but still 164 units below the same stage last year, or down 21%, close to the lowest number of working rigs since February 2022.

The oil rig count increased by six to 500 units last week, and while the largest increase in nine months, it was 123 fewer than at the same stage last year. Rigs drilling for gas were down four at 114, or 43 down on the year.

Texas, the largest producing state, was unchanged at 302 units, while New Mexico, Colorado and North Dakota each added two rigs.

Meanwhile, US crude oil prices retreated for a fourth week, although Friday's firm rally helped to cap the losses.

NYMEX WTI trading on the Chicago Mercantile Exchange settled on Friday at $75.89/b for the Dec23 contract, down 1.6% on the week.

Front-month Jan23 ICE Brent futures closed at $80.61/b, down 1% over the same timeframe.

US natural gas prices remained under pressure as the Dec23 Henry Hub contract on NYMEX closed Friday at $2.96/mmBtu, which was the lowest settle of the year for that contract.

Natural gas production remains at record levels, while inventories were around 6% higher on the year.