US rig count up as oil prices lure back drillers

SAN FRANCISCO (Reuters) – The number of U.S. rigs working rose for a second week as improved crude oil prices lured back drillers even as natural gas activity weakened, according to figures from Baker Hughes Inc (BHI.N) on Friday.

The rise appeared to support predictions made a few months ago by oil services company executives for a bottoming of the closely watched rig count in the second or third quarter.

In the week to Friday, the overall U.S. rig count rose by 18 rigs to 917, having touched a six-year low of 876 two weeks before. But the number of rigs drilling for natural gas fell again, down by five at 687, as gas prices remained subdued by massive production and weak demand.

On the other hand, U.S. crude oil price futures CLc1 have doubled in the past four months, even if they are still only half their level of a year ago.

Reuters