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U.S. oil drillers cut rigs as crude prices collapse - Baker Hughes

Published 2015-09-04, 01:13 p/m
© Reuters. U.S. oil drillers cut rigs as crude prices collapse - Baker Hughes
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By Jarrett Renshaw
Sept 4 (Reuters) - U.S. energy firms cut 13 oil rigs for the
first time in seven weeks, as a renewed slump in prices this
summer forced drillers to make a second round of cut-backs.
The decline brings the total to the week ending Sept. 4 down
to 662, the lowest since mid-July, oil services company Baker
Hughes Inc BHI.N said in its closely followed report on
Friday.
The decline comes the same week new government data showed
the U.S. oil industry pumped less crude than initially estimated
this year, evidence that drillers were scaling back production
amid collapsing prices.
The revised June production data, released Monday, helped
U.S. crude prices surge as much as $3 a barrel, but the rally
was short lived.
The oil market shadowed Wall Street through most of this
week, rising and falling in tandem with stock prices.
U.S. crude's front-month CLc1 was down about 1 percent in
early trading along with equities, but pared losses after the
rig data and was trading down 5 cents at $46.70 a barrel.
U.S. crude futures fell from a six-month high of $61.43 in
June to $37.75 on Aug. 24, a 6-1/2-year low, due to oversupply
worries and uninspiring demand growth.
The Energy Information Administration said its new
survey-based output data showed the United States pumped a hair
below 9.3 million barrels per day in June, down by 100,000 bpd
from a revised May figure.
The June figure was also nearly 250,000 bpd below what the
EIA had estimated a few weeks ago, highlighting the steep
reversal in output as a five-year boom sours and suggesting to
some analysts that a global glut might ease sooner than
expected.


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