U.S. Rig Count Falls as Oil and Gas Producers Pull Back in Weak Price Climate

U.S. drilling activity declined further this week as producers responded to a weaker price backdrop, with Baker Hughes reporting a six-rig drop in the combined oil and gas count to 542, 47 fewer than a year ago. Oil-directed rigs fell by eight to 406, now 77 below year-ago levels, underscoring continued capital discipline and cautious growth expectations despite earlier incremental additions. Gas-focused rigs were unchanged at 127, still 25 higher than this time last year, suggesting operators are holding the line on natural gas output even as prices remain subdued. The slower rig deployment raises questions about future supply growth for both Oil – US Crude and Natural Gas, particularly if demand firms or geopolitical risks disrupt existing production.

Over the past month, prices for Oil – US Crude have retreated roughly 6%, reflecting concerns over demand, OPEC+ policy uncertainty, and a challenging macro environment, even as the U.S. rig count contracts. The 1-day technical outlook for US crude currently points to a short-term Sell signal, suggesting momentum remains tilted to the downside despite the prospect of slower future supply growth. In the gas market, Natural Gas prices have dropped about 16% over the last month, highlighting persistent oversupply and muted seasonal demand, yet the latest 1-day technical reading is a Hold, indicating a more neutral, wait-and-see stance from a short-term trading perspective. Investors can explore more updates, prices, and analysis across global markets at Commodities.