Oil Rig Count Falls by 1; Crude Prices Rise Amid Fresh US Sanctions Against Iran

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Oil Rig Count Falls by 1; Crude Prices Rise Amid Fresh US Sanctions Against Iran

, MT Newswires - 4:06 PM ET 3/21/2025 default

04:06 PM EDT, 03/21/2025 (MT Newswires) -- The number of oil rigs in the US decreased by one during the week ended Friday, according to data compiled by energy services company Baker Hughes (BKR).

The count for oil dropped to 486, while gas added two rigs to 102. Miscellaneous rigs were unchanged at five. The US had 509 oil, 112 gas and three miscellaneous rigs in operation a year earlier, the data showed.

As of Friday, 593 rigs were operating in the US overall, compared with the previous week's tally of 592 and last year's 624.

Among US states, Oklahoma added two rigs sequentially to 53, while Louisiana added one to 30. Texas lost one to 280.

Across North America, the oil and gas rigs tally fell by 18 on a weekly basis to 773, as Canada lost 19 to end up with 180.

West Texas Intermediate crude oil edged up 0.3% to $68.29 a barrel in late afternoon trading on Friday, while Brent added 0.2% to $72.17. WTI was on course for weekly gains of about 2%, while Brent was up 2.2% on the week.

Fresh US sanctions against Iran announced Thursday and an output-reduction plan from the Organization of the Petroleum Exporting Countries and its allies raised expectations of tighter supply, D.A. Davidson said in a note.

"Increased enforcement of US sanctions on Iranian oil exports is an upside risk to the oil market," ING Head of Commodities Strategy Warren Patterson said in a note. "Iran exported roughly 1.4 (million barrels per day) of crude oil in February and (US President Donald) Trump has vowed to drive these volumes even lower."

OPEC+ members on Thursday issued a schedule for output cuts that will run through June 2026, Patterson said.

"Importantly, they more than offset the monthly supply increases set to start in April," he said. "However, while the group shares a plan for compensation cuts, it certainly doesn't mean members will follow it. A handful of members have consistently produced above their target production levels."

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