US oil companies cut number of rigs for the first time since January
US energy companies cut the number of oil rigs this week for the first time since January, as the pace of growth slowed this quarter due to falling crude prices despite OPEC-led efforts to reduce production and eliminate the years-long supply gap.

However, analysts pointed out this week that a decline in the number of platforms is likely to be a brief halt to the recovery of drilling activities expected to continue until 2019 at least.


Baker Hughes Energy Services said companies cut the number of oil drilling platforms by two platforms in the week ending June 30 to a total of 756 platforms, still more than twice the previous week's 341.

The decline comes after a record 23-week spike in Baker Hughes's 1987 data. Companies have increased the number of rigs in 52 weeks of the past 57 weeks since the beginning of June 2016.

However, the pace of the increase in the number of rigs has slowed over the past few months as crude prices have fallen.

In the second quarter, companies increased the number of rigs by 94 compared with 137 in the first quarter.

In the first half of the year, or since the Organization of the Petroleum Exporting Countries (OPEC) began restricting production, US drilling companies increased the number of platforms by 231 platforms, up from 195 in the second half of 2016, which reduced the number of platforms in the first half of 206 Pads.

US crude futures were trading at about $ 46 a barrel today, putting the nearest one-week rally on the six-week high.

After OPEC and producers agreed in December to cut output by 1.8 million bpd for six months from January to June 2017, the organization and independent producers agreed on May 25 to extend the agreement by an additional nine months until the end of March 2018.

Analysts say OPEC-led output cuts are disappointing as US and other crude oil production rises from other producers hoping to tap higher oil prices in the coming months.

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