US oil rig count falls by most in a week since June 2023

US energy firms this week cut oil rigs by the most in a week since June 2023, lowering the total oil and natural gas rig count for a third consecutive week, energy services firm Baker Hughes said in its closely followed report on Friday, reports Reuters.

The oil and gas rig count, an early indicator of future output, fell by seven to 583 in the week to April 11, the biggest weekly decline since June 2024.

Baker Hughes said this week's decline puts the total rig count down 34 rigs, or 6 per cent below this time last year.

Baker Hughes said oil rigs fell by nine to 480 this week, while gas rigs rose by one to 97.

In the Permian basin in West Texas and eastern New Mexico, the nation's biggest oil-producing shale basin, the rig count fell by five, cutting the total count to 289, the lowest since December 2021.

The oil and gas rig count declined by about 5 per cent in 2024 and 20 per cent in 2023 as lower US oil and gas prices over the past couple of years prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output.

Even though analysts forecast US spot crude prices would decline for a third year in a row in 2025, the US Energy Information Administration (EIA) on Thursday projected crude output would rise from a record 13.2 million barrels per day (bpd) in 2024 to around 13.5 million bpd in 2025.

That increase in US crude output, however, was lower than EIA's outlook in March due to lower oil price forecasts as US President Donald Trump's tariffs increase the chances of weaker global economic growth and oil demand.