US Oil Rig Count Hits 16-Month Low as Industry Faces Uncertainty

The number of oil rigs dropped by 5 to 682 in the last week of June, reaching the lowest level since April 2022.

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Baker Hughes documented a total decline of 71 oil rigs, a small decrease of 9% compared to last year.

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The current number of rigs is 682, which is 71 rigs less than last year's count and 393 rigs less than at the beginning of 2019.

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The decline in oil rigs was the result of losing six rigs, bringing the total to 546, while 130 gas rigs remained unaffected.

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Gas rigs are down 27 rigs from last year's count, while oil rigs are down 48.

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There was a significant increase in single rigs in the miscellaneous sector, making a total of six rigs in that sector.

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In the Permian Basin, one of the leading oil-producing areas, the rig count dropped by 1, currently standing at 8 rigs below the previous year's count.

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The production of crude oil in the United States was reduced to 12.2 million barrels per day in the 3rd week of June, equivalent to January levels, but US production levels were upscaled by 200,000 compared to the previous year.

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