According to energy services firm Baker Hughes Co., last week, the US rig count fell for the first time in four weeks even after the crude prices rebounded from the lows during the coronavirus peak in the past few months.
In the week ended September 11, the US oil and gas rig count slumped by 2 to 254. The oil rigs went down by 1 to 180, and the gas rigs also fell by 1 to 71.
On Wednesday, the US government adjusted its forecast for the country’s crude production, from the 990,000 bpd fall estimated in August, to a 870,000 bpd drop. US crude futures have risen by 100% over the last five months to roughly USD37/barrel on Friday, mainly due to the optimism after governments lift lockdowns.
Separately, according to a US financial services firm Cowen & Co., most of the independent exploration and production (E&P) companies would cut spending by around 47% this year from last year’s level, following a 9% slash of capital expenditures (CAPEX) last year. For 2021, the E&P cut would be 8% from this year.
