Higher Oil Brings Mixed Data on Rig Counts (BHI, OIH, USO, OIL)

Baker Hughes Incorporated (NYSE:BHI) has released its weekly data on rig counts, and it seems that the suddenly higher oil prices are reversing some declines.  There has still been no set direction between gains and losses, but these counts are at least no longer in free-fall.  We are also watching the Oil Services HOLDRs (NYSE: OIH), the United States Oil (NYSE: USO) ETF and the iPath S&P GSCI Crude Oil Total Return Index ETN (NYSE: OIL) react to this news.

The U.S. Rig Count is up 17 from last week at 985; down 1,013 year-over- year.

The Canadian Rig Count is down 6 from last week at 164; down 293 year-over- year.

The US Offshore rig count is 31, unchanged from last week; down 34 year over year.

The Oil Services HOLDRs (NYSE: OIH) is up 3.3% at $108.43, the United States Oil (NYSE: USO) ETF is up 2% at $38.42 and the iPath S&P GSCI Crude Oil Total Return Index ETN (NYSE: OIL) is up 2% at $25.39 after the rig count news.

JON C. OGG
AUGUST 21, 2009