Rising Oil Prices and the Baker Hughes Rig Count
In today’s video update Kris looks at Russia and OPEC’s deal to cap oil supply, and the impact it could have on US oil production…
In this video you will learn:
- The Baker Hughes Rig Count
- OPEC and Russia’s deal to cut Oil Supply
- The impact on the oil price is US dollars per barrel.
- Federal Reserve interest rate increase could be coming soon.
Hi Kris Sayce here back for another video update.
Overnight Russia indicated that will join OPEC with limiting the oil supply. That’s sent oil up to over 53 US dollars per barrel but it’s also had an impact elsewhere as well.
Let’s have a look at this chart. This is the Baker Hughes Rig Count showing you the number of active onshore rigs in the US. And what you can see here is that since around May of this year the recant started to rise.
That has been as the oil prices recovered from the low in February but what it also does is it means that the higher cost US shale oil producers will benefit or should benefit from the higher oil price. So, we’ll keep a close on this rig count over the months and weeks ahead.
If the oil price remains high as OPEC and Russia continue to cut or reduced supply then this could have an incredible impact on the rig count and also on US production levels.
That’s all for today we’ll be back with another update soon.