U.S. oil rig count dips to lowest on record
The latest numbers show the continuing fallout for oil producers as stay-at-home orders have caused fuel demand to plummet.
U.S. crude production fell for the second straight month as the number of rigs fell to its lowest recorded level during the week ending May 15, according to government data released Wednesday.
The latest numbersfrom the Energy Information Administration show the continuing fallout for oil producers as stay-at-home orders stemming from the coronavirus outbreak have caused fuel demand to plummet. Still, some analysts see the market as bottoming out as travel slowly creeps up and states start to allow businesses to reopen.
Oil companies produced 11.5 million barrels a day of oil during the week ending May 15, according to the EIA. The latest number, only 100,000 barrels a day lower than the previous week, shows the rate of decline may be slowing, but is still down considerably from the 13.1 million barrels being produced daily in early March.
Only 339 rigs were operating in oil and gas fields, the lowest number on record and less than half the number as of March 17, the EIA reported.
In the brightest sign yet for the oil market, crude oil inventories fell 5 million barrels from the previous week, though still 10 percent above the five-year average, the EIA said. Gasoline and diesel inventories increased, however.
The amount of oil heading to refineries increased by half a million barrels a day, the EIA said. Refineries were operating at 69.4 percent of their capacity, up slightly from the week before, though gasoline and diesel production both fell.