First Major Rig Count Growth In Months (BHI, USO, OIL)

Baker Hughes Incorporated (NYSE: BHI) has released its first rig count in weeks that shows an increase.  This follows months and months of declining rig counts as many were down more than half from last year.  It seems that $70.00 oil is letting the drillers chase prices with ample profitability.

As oil prices slid today, the United States Oil (NYSE: USO) ETF is down 1.5% at $38.24 and the iPath S&P GSCI Crude Oil Total Return Index ETN (NYSE: OIL) is down 1.6% at $25.26.

The rig counts are as follows:

U.S. Rig Count is up 23 from last week at 899; down 1007 year over year.

Canadian Rig Count is up 35 from last week at 143; down 116 year over year.

The US Offshore rig count is 46, down 1 from last week; down 25 year over year.

Maybe paying $70.00 for foreign oil is finally getting harder to stomach than $40 and $50 oil.

Jon C. Ogg
June 19, 2009