The number of active oil drilling rigs in the United States rose by two for the second straight week, reaching 433, according to Baker Hughes data published Friday. The total domestic rig count, including oil, gas, and miscellaneous units, now stands at 563 — one higher than the same period last year.
Oil prices dropped to their lowest level in four months amid growing optimism that the US and Iran may reach an agreement to reopen the Strait of Hormuz. The decline wiped out recent gains, underscoring the market's sensitivity to geopolitical shifts that could boost global supply.
On the natural gas side, rig activity declined by three units to 121, though this remains eight more than last year's level. The miscellaneous rig count held steady at eight. The diverging trends between oil and gas drilling suggest operators are prioritizing crude production over natural gas amid weak gas prices.
Baker Hughes has tracked rig counts since 1944, making the data a closely watched gauge of upstream activity. The incremental increase in oil rigs comes as producers exercise capital discipline, keeping additions modest despite relatively stable crude prices before this week's selloff.
A reopening of the Strait of Hormuz could unlock significant Iranian crude exports, potentially pressuring prices further. However, some analysts caution that any agreement remains tentative and that negotiations could collapse, leaving the market's current supply-demand balance largely unchanged.