The Baker Hughes Rig count for the current week showed:
- Total U.S. rigs: 580 up +1
- Oil rigs: 445 Unchanged
- Gas rigs: 126 up +1
The price of crude oil is currently trading at $71.20 down $0.88 or -1.21% on the day. The low price for the day reach $70.77. The high price was at $73.16. The 100 hour moving average is currently at $71.70 and represents close resistance. On the downside, getting through the 200 hour moving average at $70.32 would tilt the technical bias more to the downside. As it is right now, the technical bias is more neutral with the price between the 100 and 200 hour moving averages.
The Baker Hughes U.S. Rig Count is one of the energy market’s most closely watched weekly indicators because it provides a real-time look at drilling activity across the United States. Released every Friday at 1:00 p.m. ET, it tracks the number of rigs actively drilling for oil and natural gas. While it doesn’t immediately translate into production, it is viewed as a leading indicator for future oil and gas output and investment.
Why traders watch it
- More rigs generally suggest producers are increasing drilling activity, pointing to stronger production in coming months.
- Fewer rigs imply companies are cutting capital spending, often because oil or gas prices are too low to justify additional drilling.
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The report can influence:
- WTI crude oil prices
- Natural gas prices
- Energy stocks (XOM, CVX, SLB, HAL, Baker Hughes, etc.)
- Oilfield service companies
- Canadian energy shares and, occasionally, the Canadian dollar.
What has happened over the last year?
The past 12 months can be divided into three distinct phases:
1. Mid-2025: Steady decline
- Rig counts fell steadily as producers remained disciplined with spending.
- Companies emphasized shareholder returns rather than production growth.
- Lower oil prices and improved drilling efficiency meant fewer rigs were needed to maintain production.
- The total U.S. rig count fell into the low-540s, reaching the lowest levels since late 2021.
2. Late 2025 through early 2026: Stabilization
- After months of declines, the rig count largely stabilized.
- Weekly changes were generally small (+/-1 to 3 rigs).
- Oil rigs hovered around 410-415 while gas rigs fluctuated near 125-135.
- Producers remained cautious despite improving commodity prices.
3. Spring into Summer 2026: Recovery
More recently, drilling activity has picked up.
As of the week ending July 2, 2026:
- Total U.S. rigs: 580
- Oil rigs: 445
- Gas rigs: 126
Source: Original Article
