U.S. energy firms this week cut the number of rigs operating for the first time in four weeks, energy services firm Baker Hughes said in its closely followed report on Friday.
The total oil and gas rig count, an early indicator of future output, fell by five to 588 in the week to August 21. Baker Hughes said the total count was still up 50 rigs, or 9.3%, from this time last year. Baker Hughes said oil rigs fell by three to 452 this week, while gas rigs fell by one to 127 and other miscellaneous rigs fell by one to nine. In the Permian, the nation’s biggest oil-producing shale basin in West Texas and eastern New Mexico, the rig count rose by two to 267, the most since June 2025. In the Eagle Ford shale in South Texas, the rig count rose by one to 50, the highest since June 2024. In Texas, the state with the most rigs, the rig count rose by four to 281, the most since February 2025. The oil and gas rig count declined by 7% in 2025, 5% in 2024, and 20% in 2023 as lower U.S. oil prices prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output. But spot U.S. West Texas Intermediate crude prices are expected to rise in 2026 due to supply disruptions in the Middle East from the Iran war after declining in 2023, 2024, and 2025.
(Reporting by Noel John in Bengaluru, Editing by Franklin Paul and David Gregorio)