US oil rig counts fell this week

oil rig

The oil rig count in the US fell by 2 this week, according to weekly data from Barker Hughes on the subject.

It may seem a small number at first; however, when you take into account what the rig count was this time last year, it's a serious matter for the industry, which is already at the epicentre of unknowns.

According to the information available from Barker Hughes, the rig count was 632 this time, last year. It's a massive percentage drop.

oil rig count

In this context, it's not rocket science to guess the impact; the loss of rig count means loss of activity and hence the production of oil.

The news of the loss of rig count coincides with the rise in oil inventories this week - a clear sign of lack of demand on the ground.

Although there was a significant increase in traffic on the roads, both in Europe and Asia in the past few weeks, the fear of lockdowns still looms over the entire industry, which in turn could turn thing around for the worse again.

Really uncertain times lie ahead of the oil industry, indeed!


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