More Rigs Chasing Higher Oil (BHI, OIH, USO, OIL)

Rig Counts Chasing Oil Prices (OIH, USO, OIL)

The weekly rig count data from Baker Hughes Inc. (NYSE: BHI) is out, and this last week we are seeing a bump in rig counts across the board.  These might be way down from peak drilling levels in 2008 when oil was well over $100, but this is at least a move in the right direction for the drillers. 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.

U. S. Rig Count is up 14 from last week at 999; down 1032 year over year.

Canadian Rig Count is up 20 at 184; down 252 year over year.

The US Offshore rig count is 32, up 1 from last week; down 38 year over year.

The Oil Services HOLDRs (NYSE: OIH) is down 0.1% at $107.80, the United States Oil (NYSE: USO) ETF is up 0.1% at $37.80 and the iPath S&P GSCI Crude Oil Total Return Index ETN (NYSE: OIL) is up 0.3% at $24.95 after the data.

JON C. OGG
August 28, 2009