The global oil market remains volatile and the current geopolitical situation is only leading to more questions and uncertainty. Baker Hughes recently released their report on the U.S. oil rig count and it shows continued growth. With the oil prices rising around the globe, the U.S. has been quick to reestablish their domestic oil production capabilities and in a big way.
Overall, the U.S. comes in a 839 rigs, up 89.4% year-over-year and up 107.7% since the count bottomed out at 404 in May of 2016. The rig count is now the highest since Sept. 18, 2015. This is the 12th consecutive straight week of gains for the U.S. oil rig count and it could have a dramatic impact on the global oil and manufacturing industry.
Manufacturers are heavily influenced by the oil and gas industry. An oil rig demands large industrial components and replacement parts. As the oil industry continues to rebound, manufacturers will reap the benefits of increased demand for industrial components.
Baker Hughes is reporting that the U.S. added 10 oil rigs and 5 gas rigs last week. The total oil rig count reached 672, a 89.8% increase year-over year. Still, the oil rig count is far below the 1,600 mark reached in October of 2014. Oil’s crash in 2014 sent the U.S. oil industry into a tailspin, only the leanest oil operations were able to weather the turbulent business environment. Now, these producers are able to take the lessons learned from a low price environment and thrive as the oil price climbs. The gas rig count reached 165, up over 85% year-over-year and double the amount recorded in August 2016.
Oil prices have already reached above $50 after dropping below this crucial threshold on Wednesday 4/5/2017. Today prices for WTI, the U.S. benchmark, jumped above $52.82. The international benchmark, Brent, is currently hovering around $55.75.
Recent military actions in Syria left many wondering how it will impact the oil market here and abroad. However, markets seems to rally back and shrug off the incident. Only time will tell how the world will react and how it will impact the industry. Be sure to check back on Manufacturing Talk Radio for the latest developments in the manufacturing and oil industry.