By Angela Chen
The U.S. oil-rig count fell by 33 to 986 in the latest week,
according to Baker Hughes Inc., dropping below 1,000 for the first
time since June 2011.
The number of active rigs has declined for 12 straight weeks. In
comparison, there were 1,609 rigs in October.
Oil prices have staged an uneven rebound in recent weeks, helped
in part by the data series, which seems to suggest lower oil prices
are leading companies to drill less--which could eventually help
end the supply glut that has sent oil prices down by about 50% from
their peak last June.
As the number of oil drilling rigs in the U.S. continues to
fall, JBC Energy estimated this week that the drop should result in
crude output falling by 200,000 to 250,000 barrels a day in the
second half of this year.
Oil futures slightly pared their gains following the data's
release. Brent was up 2.2% to $61.29 a barrel in midday trading and
had previously been up more than 3%.
According to Baker Hughes, gas rigs were down nine to 280 this
week. The U.S. offshore rig count is at 51, down three rigs from
last week and down four from the same period in the year-earlier
period.
For all U.S. rigs, including natural gas, the week's drop was 43
to 1,267. Compared with a year ago, this week's number is down
502.
Write to Angela Chen at angela.chen@dowjones.com
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