Rig Counts Climb With Higher Oil (BHI, USO, OIL)

Baker Hughes Incorporated (NYSE: BHI) has released its newest data on rig counts for the last week, and it seems that oil and gas producers might finally be increasing their rigs with higher prices again.  While there may be some seasonality, this is still an increase in all categories from the prior week.  So far, we are still seeing solid trading in the The United States Oil (NYSE: USO) ETF and the iPath S&P GSCI Crude Oil Total Return Index ETN (NYSE: OIL).

U.S. Rig Count is up 23 from last week at 943; down 1014 year over year.

Canadian Rig Count is up 28 from last week at 180; down 255 year over year.

The US Offshore rig count is 37, up 2 from last week; down 30 year over year.

The United States Oil (NYSE: USO) ETF is up 0.4% at $35.93 and the iPath S&P GSCI Crude Oil Total Return Index ETN (NYSE: OIL) is up 0.5% at $23.66.  Oil itself in the NYMEX WTI Crude is up $0.39 at $67.55 per barrel before the 2:30 PM EST close.

If T. Boone Pickens was right on his last oil call for $75.00 per barrel by the end of the year and even higher average prices in 2010, chances are there will be more rig counts ahead.

JON C. OGG
JULY 24, 2009