Breaking News
Investing Pro 0
Free Webinar - Crude Oil Trading 2023 | Thursday, February 9, 2023 | 01:00PM PST Enroll Now

Crude up 2nd Straight Week as US Oil Rig Count Hits Financial Crisis Lows

Commodities May 08, 2020 03:42PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
NXGN
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LCO
+1.71%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-0.03%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USO
+1.36%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Barani Krishnan 

Investing.com - Crude prices finished with a second straight week of double-digit gains on Friday after the  U.S. oil rig count hit financial crisis lows.

West Texas Intermediate, the benchmark for U.S. crude, settled up $1.19, or 5%, at $24.74 per barrel.

For the week, WTI was up 25%, pushing through with the previous week’s near 17% gain as traders and investors bet on slumping oil production and nascent recovery in demand from a reopening of the U.S. economy from Covid-19 lockdowns.

“WTI is still the cheapest barrel to run in North America and that tells me it should continue to perform,” said Scott Shelton, energy futures broker at ICAP (LON:NXGN) in Durham, N.C.  

London-traded Brent, the global benchmark for oil, finished up $1.51, or 5%, at $30.97. For the week, Brent was up nearly 17%, after last week’s gain of more than 23%.

U.S. oil rigs, as measured by oil services firm Baker Hughes, fell by 33 this week to reach 292. The number had previously never fallen beneath 300, since the 2008/09 financial crisis.

The record low for U.S. oil rigs was 98, seen in November 2002. But a combination of oil and gas rigs, known as the total rig count, hit a record low of 374, after falling by 34 this week, according to Baker Hughes, which has been tracking those numbers since 1940.

 

Crude up 2nd Straight Week as US Oil Rig Count Hits Financial Crisis Lows
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Daryoush Saneifar
Daryoush Saneifar Feb 16, 2022 6:43PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
then why is it falling now?!!!
Daryoush Saneifar
Daryoush Saneifar May 08, 2020 2:09PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
then why is it falling now?!!!
Bill Hoerter
Bill Hoerter May 08, 2020 2:09PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bought the rumor now selling the facts as reported on the news
Daryoush Saneifar
Daryoush Saneifar May 08, 2020 2:07PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
then why is it falling now?
Mike Latburg
Mike Latburg May 08, 2020 2:07PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
its pricey to restart it and not guaranteed the crude to be there again
Charles Kao
ckao May 08, 2020 1:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If storage is tight, keeping oil in ground makes sense.
Barani Krishnan
Barani Krishnan May 08, 2020 1:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yes. But you have drillers like Parsley and Diamondback already saying $30 and above is good for them to turn the spigots back on :)
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email