US oilfield-services companies added oil rigs for a 20th straight period last week, underscoring the sustained demand from shale producers.
The oil-rig count rose by 11 to 733, the biggest jump in seven weeks, Baker Hughes’ weekly report showed. The count of gas rigs fell by three to 182. The count of miscellaneous rigs was unchanged at two, taking the total rig count up by eight to 916.
Crude oil fell on Friday after the US withdrew from the Paris Agreement, amid speculation that this could increase production of non-renewable energy sources. Even before President Donald Trump announced the withdrawal on Thursday, some analysts had been concerned that any cuts by OPEC countries will be negated by increased shale production in the US.
The Organisation of Petroleum Exporting Countries and its allies agreed last month to extend their production cuts through March 2018.
Brent crude oil dropped below $US50 on Friday for the first time since May 10th.