US energy firms post biggest weekly rig addition since June 2022

Key Facts

1U.S. energy firms this week added the most rigs in a week since June 2022, energy services firm Baker Hughes said in its report on Friday.

In a development reflecting sustained momentum in the US energy sector despite oil price volatility, Baker Hughes reported Friday that US energy firms added the most rigs in a week since June 2022. The expansion points to growing drilling activity as crude prices remain at levels that incentivize investment.

The weekly increase extends a streak of four consecutive months of rig growth in the Baker Hughes count, according to prior company data, reinforcing the trend of rising US output. It coincides with crude oil prices stabilizing near $70 per barrel, per market data, providing incentives for producers to expand operations despite concerns over global demand slowdown.

Baker Hughes (BKR) shares closed at $56.94 on June 25, ranging between $55.69 and $57.81 during the session. Investors are watching weekly crude inventory reports from the American Petroleum Institute (API) and the Energy Information Administration (EIA) in the coming days, which could intensify selling pressure on crude if they show a build in stockpiles.