Baker Hughes Inc. (NYSE: BHI) has released the weekly rig counts. The bad news is that these rig counts are still declining. The good news is that this really appears to be stabilizing at least some on the rate of change. Here is this week’s count:
U.S. Rig Count is down 10 from last week at 945; down 894 year over year.
Canadian Rig Count up 2 from last week at 67; down 28 year over year.
The U.S. Offshore rig count is 51, unchanged from last week; down 18 year over year.
We have noticed how oil inventories keep rising and rising. That is obvious demand destruction taking effect, and the unemployment rate heading closer and closer to double-digits may keep that demand subdued for longer than normal.
We can’t pull out any stops here and call an absolute drop in rig counts. But again, the rate of change is much lower and even if there is a further drop through time we would guess that this will come at a much slower rate than what we saw in the first months of 2009 and late in 2008.
So far we have not seen any sharp reactions in oil. The United States Oil ETF (NYSE: USO) is still up 4% at $29.82.
JON C. OGG
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
