A drilling rig operates at sunset Tuesday, July 5, 2022, near Midland.
Jon Shapley, Houston Chronicle/Team PhotographerThe number of U.S. rigs is down this week even as the price of oil rose following news that the Organization of the Petroleum Exporting Countries would cut production quotas by 2 million barrels a day in the aim of keeping oil prices high.
The number of drilling rigs in operation fell three nationally to 762 this week, according to oil services company Baker Hughes. Oil and gas companies in the United States added 229 rigs in the past year, an increase of nearly 43% from the 533 in operation at the same time last year.
RELATED: Fuel prices likely to rise as US stocks fall and OPEC promises cuts
Meanwhile, the price of West Texas Intermediate, the US benchmark for crude oil, started the week around $83 a barrel. The price rose throughout the week, especially on news that the international oil cartel and its allies known as OPEC+ would cut its production limits by 2 million barrels per day.
Analysts say OPEC’s move will likely mean a real cut in global supply of around 900,000 barrels a day as some member nations were already failing to meet quotas. Still, the news sent prices at the end of the week around $92 a barrel on fears that the already tight global oil supply could become even tighter.
The number of rigs is around 30 below the 790 rigs in service at the start of 2020 before the pandemic hit. According to the Department of Energy, at that time the price of WTI was trading about $50 a barrel – and analysts said the price would have been higher had it not been for a price war between Russia and Saudi Arabia at the time.
More Stories
🌱 Rail In Roanoke Fifth Anniversary + ‘Love Letters’ Production
Industrial production in South Korea contracts by 1.8% in September
PM Modi lays foundation stone for C-295 transport aircraft production plant