The US energy sector continued to show signs of recovery and relative stability, with the number of oil rigs operating in the United States increasing for the second consecutive week in the week ending December 12. This gradual rise is a key indicator closely watched by analysts, as it reflects the potential for increased US crude production in the near future, which directly impacts supply and demand dynamics in global markets.
Baker Hughes Weekly Data Details
Official data released by oilfield services giant Baker Hughes on Friday showed that the number of oil rigs operating in the United States rose by one, bringing the total to 414 this week. This data is considered a reliable indicator of future drilling activity, as an increase in the number of rigs typically means that energy companies are investing to boost production in response to current price levels or future demand forecasts.
Variation in the natural gas sector
In contrast to the upward trend in the oil sector, the natural gas sector experienced a slight decline. The number of natural gas drilling rigs decreased by two, settling at 127 during the same period, according to the report. This discrepancy reflects the strategies of producing companies, which may prefer to focus on crude oil under current market conditions rather than natural gas, or it may be the result of scheduled maintenance or adjustments to seasonal production plans.
The importance of the drilling rig index and its economic impact
The Baker Hughes report is gaining significant importance in global economic circles for several reasons:
- An early indicator of production: The number of active drilling rigs is considered a leading indicator of future oil and gas production levels in the United States, which is currently the world's largest oil producer.
- Price Impact: This data directly affects crude oil prices (WTI and Brent). An increase in drilling rigs could put downward pressure on prices due to expectations of ample supply, while a decrease could support prices.
- Shale oil industry: These figures reflect the health of the US shale oil sector, and the ability of companies to expand and be profitable at current price levels.
This continued increase for the second week comes at a sensitive time for energy markets, as markets balance between OPEC+ alliance decisions on production quotas, the recovery in global demand, and the continued growth in supplies from outside the organization, primarily the United States.
