Baker Hughes reported that the US oil rig count rose by one to 460 in the week ending October 23. Gas rigs fell by one to 132 over the same period, offsetting the increase and leaving the total US rig count unchanged at 603.

The weekly US breakdown, with year-ago comparisons:

• Oil rigs: 460, versus 459 last week and 420 a year ago — up 40 year over year
• Gas rigs: 132, versus 133 last week and 121 a year ago — up 11 year over year
• Miscellaneous rigs: unchanged at 11, versus 9 a year ago
• Total US rigs: unchanged at 603, versus 550 a year ago — up 53, or 9.6%, year over year

In Canada, the rig count increased by three to 220, compared with 199 a year ago. That brought the combined North American total to 823, up three on the week and up 74 from 749 a year earlier.

While the weekly changes were modest, the year-over-year comparison shows a higher level of drilling activity, with oil rigs accounting for most of the US increase.

The rig count is compiled weekly by oilfield services company Baker Hughes and is a widely followed measure of upstream drilling activity in the United States and Canada. The series, which Baker Hughes has published since the 1940s, counts rigs actively exploring for or developing oil and gas rather than production itself, so week-to-week moves are generally read as a gauge of operators' near-term drilling plans rather than a direct read on supply.

The next weekly reading, covering the week ending October 30, will add a further data point to that year-over-year comparison.

Source: ForexLive / InvestingLive