US oil rig count rose Oil driller, Baker Hughes, reported the number of active oil rigs increased by 2 to 416 for the week ending September 16. This was the 14th week of increases out of the past 16, with one week during the stretch experiencing a decline and the other remaining unchanged. The number of gas-only rigs fell by 3 to 89. This brings the total number of active oil and gas rigs to 506, a decrease of 2. The total count is lower by 336 from a year earlier, while the oil-only is down by 225.
Last week the oil-rig count climbed by 7 to 414, while the total rig count increased by 11 to 508.
Oil had little response to today’s data. The October WTI futures contract is currently declining by over 2% to $43.57.
US light crude futures rose by more than 1 percent to $43.67 per barrel early on Wednesday, boosted by media reports suggesting that major oil-producing countries could be close to a deal to stabilize crude output. Strong oil prices may support energy stocks on Wednesday.
The first day of the week will be a quiet one for both U.S. economic data and earnings. The NAHB housing market index is due, along with results from Ascena Retail Group.
Later in the week, all eyes with be on the U.S. Federal Reserve’s policy announcement on Wednesday at the end of its two-day September meeting. Market consensus is for the Fed to hold its base rate at 0.25-0.50 percent.
Maduro, an oil price hawk who was speaking at the end of a summit of the Non-Aligned Movement on Margarita Island, Venezuela, where diplomats also met to discuss the oil market, said a deal was imminent.
“We had a long bilateral meeting with Rouhani. We’re close to a deal between OPEC producer countries and non-OPEC,” Maduro told a news conference.
Iranian President Hassan Rouhani, who attended the summit, said Tehran supported any move to stabilize the global oil market and lift prices, according to the Iranian Oil Ministry news agency, SHANA.Click here for reuse options!