Bakers Hughes Total Rig Count 758 in the Current Week, Up 5 for the Week

Why It Matters

The unexpected inventory draw and record SPR release tighten physical supply, supporting crude prices despite bearish technicals, and signal strong demand amid geopolitical risk.

Key Takeaways

• Total U.S. rig count rises to 558, up 7 rigs.
• Crude inventories fell 7.9 million barrels, 2% below five‑year average.
• Strategic Petroleum Reserve draw hits 9.9 million barrels, record weekly release.
• Cushing stocks drop to 25.8 million barrels, tightening supply hub.
• U.S. crude production steady at 13.7 million bpd, exports strong.

Pulse Analysis

The latest Baker Hughes rig count shows a modest uptick in drilling activity, with oil rigs increasing to 425 and the overall rig total reaching 558. While the rise is modest, it reflects continued confidence among operators to capitalize on near‑term price stability. Crude oil’s price of $96.35 remains just under the 100‑hour moving average, a technical level that has historically acted as resistance. Traders are watching whether the market can break above the $100.74 threshold, which could unlock further upside despite the current bearish bias.

Inventory dynamics this week have been a decisive market driver. Commercial crude stocks plunged by 7.9 million barrels, far exceeding the 3 million‑barrel draw analysts forecast, pushing total inventories 2 % below the five‑year norm. The Strategic Petroleum Reserve’s unprecedented 9.9 million‑barrel release further erodes buffer capacity, leaving the SPR at a historically low 374.2 million barrels. At Cushing, the nation’s benchmark hub, stocks slipped to 25.8 million barrels, reinforcing a tight supply backdrop that underpins price support and may limit downside risk in the near term.

On the supply side, U.S. crude output held steady at 13.7 million barrels per day, while both imports and exports nudged higher, reflecting robust global demand for American oil. Refinery utilization stayed elevated at 91.6 %, though inputs dipped slightly, suggesting a cautious approach to feedstock amid inventory volatility. Gasoline inventories also fell, albeit less than expected, keeping stocks about 5 % below the five‑year average. Together, these factors paint a picture of a market balancing strong demand, constrained supply, and technical price pressures, setting the stage for continued price resilience as geopolitical tensions persist.