Date: 1513 EST
According to a report from oil services company Baker Hughes, the number of oil drilling rigs in the U.S. has increased by two units compared to the previous week, reaching a total of 500 rigs. However, this number is still 121 rigs lower than the count from a year ago.
Despite the decline in rig count, U.S. crude oil production has been consistently reaching new highs in recent weeks, reaching a record-breaking 13.3 million barrels per day. This impressive feat can be attributed to the increased efficiency of drilling and fracking operations.
On the other hand, the number of natural gas drilling rigs remained the same as the previous week, standing at 120 rigs. However, compared to a year ago, there has been a decrease of 36 rigs in natural gas drilling.
As the year comes to an end, oil prices are showing stability in the market. The price of WTI for February has experienced a slight increase of 0.2%, currently sitting at $71.93 per barrel. However, over the course of the year, oil prices are expected to see a decline of approximately 10%.
In contrast, natural gas prices continue to face challenges due to mild weather conditions reducing demand. The price of natural gas for February delivery has fallen by 1.1% and now stands at $2.529 per million British thermal units (mmBtu).
Overall, despite fluctuations in rig counts and prices, the U.S. oil industry remains resilient and continues to set new records in crude oil production.
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