The Baker Hughes North American rig count is up 2 rigs in the September 8 week to 1,146, surprisingly posting the first increase in 6 weeks despite expectations of a decrease given an assumed but as of last week unverified and uncounted decline in the number of Texas rigs taken out of commission by Hurricane Harvey. But Texas rigs remain unchanged from last week in the Baker Hughes count at 455, while the overall U.S. rig count is up 1 rig on the week to 944, which is 436 rigs more than last year at this time. The Canadian count is up 1 rig to 202 and is up 68 rigs from last year.
For the U.S. count, rigs classified as drilling for oil are down 3 rigs at 756 while gas rigs are up 4 to 187. For the Canadian count, oil rigs remain unchanged at 102 and gas rigs are up 1 to 100.
The surprising increase in the count failed to confirm one of the assumptions lifting crude oil prices this week -
a decline in Texas exploration and development activity in the wake of Hurricane Harvey. WTI futures, already down more than a dollar on the day prior to the report, extended the day's losses by another 40 cents to around $47.72 per barrel in the minutes after its release.