The number of active oil rigs less than half its total a year ago and below 500

Fuel Fix:

The number of operating U.S. oil and gas rigs continued its steep declines this week, plunging by 64, according to Baker Hughes.

The count is a leading indicator of oil and gas production activity in the U.S. The number of operating rigs in the U.S. is now 465, a level not seen since the last energy downturn in 2016.

The losses reflect an oil bust that began in January, as the coronavirus and a price war sent crude prices falling from about $60 a barrel to well below $20 per barrel. Oil for June delivery was trading at $16.83 at 12:30 p.m. central on Friday.

A year ago, there were nearly 1,000 operating oil and gas rigs in the U.S.

The majority of the losses this week came from Texas, where operators pulled 31 rigs out of operation. Texas, home to most of the Permian Basin, hosts about half of the nation’s oil and gas rigs.
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Demand for oil is still anemic as countries around the world have yet to recover from the lockdown caused by the Coronavirus outbreak.  While there are some steps toward reopening economies in 16 US states, it is likely to be slow and uneven as people continue social distancing in many areas of the economy.