Canadian rig count down by three
Baker Hughes reports US energy firms upped the rig count for the 16th straight week in a row, increasing the count to 703 oil rigs, despite crude prices falling behind the $50/barrel mark.
According to the report, drillers added six rigs in the week ending May 5, the most since April 2015 and well over double the count at this time last year.
The rate of additions has declined over the past four weeks to the lowest since the week to March 10 as the global crude oversupply stubbornly hangs on.
The Canadian oil and natural gas rig count fell by three to 82 last week.
This week, US crude futures were trading at around $46/barrel after falling to a five-month low on Thursday. The drop erased all gains made since OPEC and some non-member nations agreed to cut output by 1.8 million b/d.
The contract is on track for its third week of declines, which would be the longest losing streak since November.
Reuters reports analysts continue to project increased spending by US energy firms on drilling to pump more oil and natural gas from shale fields in the coming years. Firms are hoping energy prices will rise in the coming months.
Futures were trading at around $47/barrel for the balance of 2017 and about $48/barrel for calendar 2018.
This week, Apache raised its North American production estimate on the basis of forecasts of higher crude prices. The Houston-based company also dropped its costs forecasts based on improvements in technology that will help Apache pump more for less money.
Petroleum distribution company Magellan Midstream announced it was looking at building a new pipeline to transport crude and condensate from the shale-rich Permian Basin to Corpus Christi.
The Permian is the biggest and fastest growing shale oil basin in the US.