US Drillers Edge Upward as Production Stagnates Near Record Highs

The latest Baker Hughes report confirms a modest expansion in drilling activity, pushing the total U.S. rig count to 588. While oil rig numbers climbed by one, natural gas operations remained static at 127 units. This cautious pace aligns with data from Primary Vision, which recorded an increase of two active frac spreads, bringing the total to 198 crews tasked with well completion.

Regional activity showed signs of life in key basins, with the Permian Basin adding two rigs to reach 260, while the Eagle Ford basin matched that increase to hit 49. These figures represent a slight rebound from previous weeks, even as production volumes remain tightly contained. Weekly output dipped marginally from 13.798 million barrels per day, though it maintains a healthy lead of nearly 500,000 barrels per day over year-ago levels.

Market sentiment remains sensitive to these output metrics, as seen in Friday’s trading session where WTI climbed 1.29% to $84.67 per barrel. Brent crude similarly gained 1.03%, settling at $89.95. Despite these daily gains, prices have faced downward pressure, retreating approximately $6 per barrel compared to valuations from the previous week.