Rig count rises again
The U.S. rig count rose by 15 as of Jan. 20, according to Enverus Rig Analytics.
The rig count in the U.S. is up 6% in the last month and down 48% year-over-year. The basin adding the most rigs was the Permian, with a six-rig jump to 183. Over the last month, the Permian Basin has gained 12 active rigs.
U.S. crude futures were trading around $52/bbl on Jan. 22. The price is just below the high of near $54/bbl high hit last week, which was the WTI contract's highest since February 2020.
However, U.S. crude futures were trading lower at around $51/bbll for the balance of 2021 and $49/bbl for calendar 2022, which could prompt producers to reduce activity in the future.
Simmons Energy, energy specialists at U.S. investment bank Piper Sandler, forecast the U.S. rig count would fall from an annual average of 433 in 2020 to 369 in 2021 before rising to 567 in 2022.
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