
WTI, Brent Rally as US Rig Count Inches Higher
Oil prices climb over 1% amid continued drilling activity increase, with Bakken crude trading at a $3.42 discount to WTI.
West Texas Intermediate (WTI) crude oil settled at $82.44 per barrel on Friday, August 14, a gain of $1.19 or 1.46%, according to live price data. The global benchmark Brent crude saw a stronger increase, rising $1.49 to $88.56 per barrel, a 1.71% jump. Bakken crude at the wellhead traded at a discount of $3.42 versus WTI.
The price gains coincided with a slight increase in U.S. drilling activity. Data from Baker Hughes published Friday showed the total number of active oil rigs in the United States rose by one this week to 455, according to OilPrice.com. The total active rig count for oil and gas reached 593, which is 54 more than the same week last year.
The Permian Basin saw the largest regional gain, adding two rigs to reach 265. Primary Vision’s Frac Spread Count, which estimates crews completing wells, also rose by two to 196 in the week ending August 7, after a decline the prior week. U.S. crude oil production for the week ending August 7 averaged 13.805 million barrels per day, a slight increase from the previous week and up 521,000 bpd from a year ago, according to the latest EIA data cited by OilPrice.com.
For Bakken operators, the combination of WTI prices holding above $82 and a relatively narrow differential of -$3.42 provides a favorable revenue environment. The sustained higher price level continues to support drilling activity, as evidenced by the national rig count remaining 43 rigs higher than this time last year. Natural gas prices showed little movement, trading at $2.72 per barrel.
The ongoing strength in oil prices, with Brent up more than $4 per barrel from the prior week according to the source report, provides a stable backdrop for capital planning in the Williston Basin. The incremental gains in rigs and frac crews suggest operators are maintaining, and in some basins expanding, development pace in response to the price signal.
Source
Live Price Data, OilPrice.com article "US Oil Drillers Add Even More Rigs As Oil Prices Stay Higher" published August 14, disavowal


