US Oil-Rig Count Rises by 5

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Still, the Permian has of late been the dominant force behind increased drilling activity as strategic operators like Diamondback Energy FANG, Pioneer Natural Resources (PXD) and RSP Permian (RSPP) ramp up production programs in the most lucrative of US oil basins.

This week's Baker Hughes rig count is the fourteenth in the string of weekly reminders that USA shale will not succumb to the price pressure that OPEC has placed on it.

USA oil production will continue to increase in the short term given the number of new rigs coming on stream this year.

The oil rig count was at its highest level since the week ending April 24, 2015.

But OPEC is not throwing in the towel just yet, as more rumors surfaced today saying that an OPEC and non-OPEC technical committee recommended an extension for another six months.

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The number of oil rigs operating in the USA rose by five to 688, climbing for the 14th consecutive week to the highest level since April.

That is more than double the same week a year ago when there were only 343 active oil rigs.

USA oil and natural gas producers added ten rigs in the past week, bringing Baker Hughes' (BHI) rig count to a total of 857 units.

Both benchmarks were trading down on the day pre-data release, with WTI off by a staggering $1.02 per barrel-or 2.01%, and Brent crude down $0.91 or 1.72%.

There was a small increase of 3 rigs for the Eagle Ford Basin for the week. Oil rigs are up 345 in the past year, while natural gas rigs have climbed by 79 and miscellaneous rigs are up two.