Oil rig count falls to new 6-year low

The US oil rig count fell by 8 to 343 this week, according to driller Baker Hughes. That was the fifth straight weekly drop.

The tally of gas rigs fell by one to 88, taking the total down 9 to 431, a new low.

Last week, we saw the combined tally fall to a new low of 440. The oil rig count fell by 3, while the gas rig count was unchanged at 89.

Crude oil prices have rallied this week and were headed for a weekly gain of about 11%, even after a meeting of producers to possibly freeze output levels failed. A workers’ strike in Kuwait, and a sixth weekly decline in US production, were among bullish catalysts.

Here’s the latest chart of oil rigs:

4 22 16 oil rigs chart

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