Oil rigs keep climbing

The number of active US oil rigs rose by 2 to 418 this week, according to oilfield-services giant Baker Hughs.

Meanwhile, the tally of gas rigs rose by 3 to 92, bringing the total to 511.

The oil-rig count has climbed in 12 out of the last 13 weeks, and has not decreased over the last 13 weeks.

Analysts have cited the recent gain in the oil-rig count as one sign that the market may remain oversupplied for a while longer.

In a note a few weeks ago, Morgan Stanley’s Head of Energy Commodity Research Adam Longson wrote that his team’s conviction in a rebalancing by mid-2017 was falling, in part due to the activation of rigs.

9 23 16 oil rigs chart

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