Oil driller Baker Hughes will release the latest count of US oil and gas rigs at the top of the hour.
Last week, the change in the oil rig count turned positive for the first time in 2015, climbing by 12 to 640 — the first increase since December 5, 2014.
The combined count of oil and gas rigs also climbed, for the first time in many weeks, by nine.
Morgan Stanley thinks the rig count has bottomed. Twelve weeks ago, analysts noted, based on historical patterns, that the rig count plunge halts about 25 weeks from when producers begin taking equipment offline.
This is week 25.
It’s been an interesting week for oil. After the headlines on the “No” Greek referendum that roiled markets, and sustained evidence that the market is oversupplied, we saw a plunge in West Texas Intermediate crude oil futures to a three-month low.
WTI rallied about 3% on Thursday. On Friday, oil prices have zigzagged, with WTI falling to $US51.97 at its weakest point.
On Friday, the International Energy Administration forecast that global oil demand will slow to 1.2 million barrels per day in 2016, and that “oil has yet to run its course.”
We’ll be back with the rig count data and oil price reaction at the top of the hour. Here’s the latest chart of the oil rig count: