Even though oil prices rebound from historic lows and some producers return to the wellhead, US energy firms cut the number of oil and natural gas rigs operating to a record low for a sixth week in a row. In the week to June 12, the US oil and gas rig count fell by five to an all-time low of 279. That was 690 rigs, or 71 percent, below this time last year. Gas rigs surged 2 to 78. US oil rigs slumped to their lowest since June 2009, falling 7 to 199 this week.
After rising over 130 percent over the prior six weeks, US crude futures were trading around $36 a barrel on Friday, putting the contract down about 10 percent in that week and down around 40 percent since the start of the year.
US energy firms are expected to continue chopping rigs as they cut spending for the rest of the year and keep the count low in 2021 and 2022. From a 12.2 million bpd in 2019, the US Energy Information Administration (EIA) said the US crude output is forecast to drop to 11.6 million bpd in 2020 and 10.8 million bpd in 2021.
