Higher Oil, Higher Rigs (BHI, OIH, DIG, USO, OIL)

Maybe higher oil prices keep begetting higher rig counts.  Baker Hughes, Inc. (NYSE: BHI) has released its weekly rig counts and there are gains in all three measures.  We have been watching the Oil Services HOLDRs (NYSE: OIH), the Ultra Oil & Gas ProShares (NYSE: DIG), 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 gains are small outside of the U.S. rig counts, but small gains are better than contractions.

U.S. Rig Count is up 17 from last week at 1041; down 949 year over year.

Canadian Rig Count is up 1 from last week at 239; down 231 year over year.

The US Offshore rig count is 33, up 1 from last week; down 45 year over year.

Oil Services HOLDRs (NYSE: OIH) is down 1.1% at $121.98, the Ultra Oil & Gas ProShares (NYSE: DIG) is down 0.5% at $34.18, the United States Oil (NYSE: USO) ETF is up 0.4% at $36.82 and the iPath S&P GSCI Crude Oil Total Return Index ETN (NYSE: OIL) is up 0.33% at $24.25.  Oil measured by NYMEX WTI Crude is now flat at $71.69.

JON C. OGG
October 9, 2009