During the week ending on Friday, the number of oil rigs in the United States increased by one, reaching a total of 483 active rigs. Meanwhile, natural gas rigs decreased by one to a total of 102, while the miscellaneous category remained stable with four rigs in operation. A year ago, the US had a significantly larger count with 498 oil rigs, 120 gas rigs, and two miscellaneous rigs, as indicated by data from energy services company Baker Hughes. In total, there were 589 rigs operating in the US as of Friday, showing a decrease from 620 rigs a year earlier.

At the state level, Texas, the prime oil-producing state, added one rig in the past week to reach 285, while New Mexico saw a decrease of one rig. The rig count for North America also reflected a downward trend, with a total decline of 25 rigs week over week, resulting in 755 active rigs compared to 766 a year prior.

Additionally, the count in Canada dropped by 25 to 166. In the trading world, West Texas Intermediate crude oil prices fell by 1.6%, settling at $69.43 per barrel as of late Friday afternoon. Conversely, Brent crude remained relatively stable at $72.88 per barrel; both indices were positioned for weekly losses. This price dip comes amidst growing concerns regarding the forecast for global demand next year, as noted by D.A.

Davidson in their client communiqué. Earlier this month, the Organization of the Petroleum Exporting Countries (OPEC) revised downward its projections for global oil demand for 2024 and 2025 for the fifth consecutive month, influenced by decisions from various OPEC members and their allies, collectively known as OPEC+, to extend oil production cuts. Additionally, recent government data indicated that commercial crude stockpiles in the US decreased, although the decline was less than expected, contributing further to market sentiment..