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US oil drilling rig count holds steady last week - Baker Hughes

Gasoil News - Published on Mon, 20 Aug 2018

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Reuters reported that US energy companies kept the oil rig count unchanged this week amid a steady decline in crude prices, which hit a near two-month low earlier this week. The rig count, an early indicator of future output, held at 869 in the week to Aug. 17, General Electric Co's Baker Hughes energy services firm said in its closely followed report. The US rig count, an early indicator of future output, is much higher than a year ago when 763 rigs were active as energy companies have been ramping up production in tandem with OPEC's efforts since the start of 2017 to cut global output.

So far this year, US oil futures have averaged USD 66.30 per barrel. That compares with averages of USD 50.85 in 2017 and USD 43.47 in 2016. Looking ahead, crude futures were trading at $65 for the balance of 2018 and USD 63 for calendar 2019.

In anticipation of higher prices in 2018 than 2017, US financial services firm Cowen & Co this week said the exploration and production (E&P) companies they track have provided guidance indicating a 18 percent increase this year in planned capital spending.

Cowen said that those E&Ps expect to spend a total of USD 85.3 billion in 2018, up from an estimated USD 72.2 billion in 2017.

Analysts at Simmons & Co, energy specialists at U.S. investment bank Piper Jaffray, this week forecast average total oil and natural gas rig count would rise from 876 in 2017 to 1,031 in 2018, 1,092 in 2019 and 1,227 in 2020, little-changed from last week.

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Posted By : Nanda Koijam on Mon, 20 Aug 2018
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