WASHINGTON (Sputnik) — Oil rig counts are used as a leading demand indicator for products consumed in the drilling, production and processing of hydrocarbons, according to Baker Hughes.
Since bottoming out at 628 in late June, the oil rig count has registered seven weeks of growth and one week of decline.
US OIL RIG COUNT CLIMBS 2 TO 674 http://t.co/gKHGcdQF2Z— Business Insider (@businessinsider) August 21, 2015
The late-June bottom followed 25 consecutive weeks of decline from the October 2014 high of 1609 oil rigs.
The US oil rig count plummeted as oil prices remained low and companies refrained from investing in new wells while attempting to get the most out of existing wells.
North American Rig Count for August 21, 2015 U.S. +1 to 885, Canada —3 to 208 http://t.co/1Cxzd2AS67— Baker Hughes (@BHInc) August 21, 2015
A rally in prices since March fizzled by late June, when oil hovered around $60 a barrel, as oil inventories remain high and demand struggles to pick up the slack.
On Friday, the price of benchmark West Texas Intermediate crude oil hit a 6.5 year low at around $40 a barrel.
Baker Hughes has been tracking rotary rig counts since 1944 as a service to the petroleum industry.