US Drillers Add 7 Oil Rigs Amid Brent's $12 Weekly Surge
A jump in US oil rigs to 452 alongside surging Brent prices signals that drillers are responding to a sharp weekly rally, even as well completion activity dips.
US oil drillers added seven rigs this week, bringing the total active oil count to 452, according to Baker Hughes data published on Friday. The overall US oil and gas rig count now stands at 588, marking a 44-rig increase over the same period last year. This drilling uptick coincides with a significant price rally, as Brent jumped 4.06% to $87.65 per barrel and WTI climbed 4.15% to $82.23.
Brent has gained roughly $12 over the past week alone. However, the expansion in drilling is not yet matched by a corresponding increase in well completions. Primary Vision’s Frac Spread Count, which estimates the number of crews completing wells, fell by five to 200 in the week ending July 10, completely reversing the prior week's gain.
US crude production continues to climb regardless of the completion lag. Energy Information Administration data showed output averaged 13.861 million barrels per day for the week ending July 10. While only marginally higher than the prior week's 13.860 million bpd, this figure represents a robust 486,000 bpd increase compared to the same time last year.
Regional rig movements offer further insight into shifting capital allocation strategies. The Permian Basin added three rigs to reach a total of 259, though this remains four rigs below year-ago levels. The Eagle Ford basin held steady at 47 rigs, which is six more than last year.
Natural gas rigs remained flat at 126, representing a nine-rig increase year over year, alongside 10 miscellaneous rigs. For market participants, the current dynamics underscore a highly measured supply response. Executives are clearly reacting to recent price surges by deploying rigs, but the declining frac spread count suggests they remain unwilling to aggressively accelerate output and risk undermining the current pricing environment.
