US energy companies cut the number of active oil drillers for the second week in three weeks as new drilling stopped in the largest oilfield in the United States, where production is expected to grow at its slowest in nearly two years due to bottlenecks in pipelines.
Drilling companies cut the number of oil drilling platforms by one platform in the week ending Sept. 21, bringing the total to 866, Baker Hughes Energy Services said on Friday in its closely watched weekly report.
The number of active oil rigs in the United States, a preliminary indicator of future production, is still much higher than a year ago when 744 diggers as energy companies increased production with expectations that crude prices in 2018 would be higher than in previous years.
But since June, the number of oil rigs has mostly stabilized around 860 diggers as crude prices collapsed in the West Texas and New York state of Permian due to a lack of pipeline infrastructure to move more fuel out of the region. Pyramian is the largest oilfield in the United States.
The US Energy Information Administration said this week that oil production in Permian would rise by 31,000 bpd, the slowest growth since late 2016.
US crude rose this week 1 percent to around $ 71 a barrel, heading for a second straight week of gains in volatile trading ahead of OPEC's scheduled meeting on Sunday.
Since the beginning of the year, average US crude oil prices have averaged $ 66.64 per barrel, compared with an average of $ 50.85 in 2017 and $ 43.47 in 2016.
The number of active oil rigs in the United States, a preliminary indicator of future production, is still much higher than a year ago when 744 diggers as energy companies increased production with expectations that crude prices in 2018 would be higher than in previous years.
But since June, the number of oil rigs has mostly stabilized around 860 diggers as crude prices collapsed in the West Texas and New York state of Permian due to a lack of pipeline infrastructure to move more fuel out of the region. Pyramian is the largest oilfield in the United States.
The US Energy Information Administration said this week that oil production in Permian would rise by 31,000 bpd, the slowest growth since late 2016.
US crude rose this week 1 percent to around $ 71 a barrel, heading for a second straight week of gains in volatile trading ahead of OPEC's scheduled meeting on Sunday.
Since the beginning of the year, average US crude oil prices have averaged $ 66.64 per barrel, compared with an average of $ 50.85 in 2017 and $ 43.47 in 2016.
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