Oil Rigs Maintain Record High Production Despite Decrease

The number of oil rigs operating in the United States has seen a slight increase of two units, bringing the total to 500, as reported by oil services company Baker Hughes^1^. While this figure is 121 rigs less than the previous year, it hasn’t hindered the U.S. crude oil production, which recently hit a record-breaking 13.3 million barrels per day^1^. This achievement can be attributed to the effectiveness of drilling and fracking techniques.

Natural Gas Rigs Remain Stable

On the other hand, the number of rigs drilling for natural gas has remained constant at 120 units compared to the previous week^1^. However, when compared to the same time last year, there has been a decrease of 36 rigs^1^.

Steady Oil Prices with Lingering Annual Loss

As the year comes to an end, oil prices have maintained stability in the market. The price of West Texas Intermediate (WTI) crude oil for February delivery has slightly increased by 0.2% to $71.93 per barrel^1^. Despite this positive trend in the final trading day of the year, WTI crude oil is on track for an annual loss of approximately 10%^1^.

Natural Gas Prices Struggle Due to Mild Weather

The demand for natural gas continues to be affected by mild weather conditions, leading to challenges in price performance. Natural gas prices for February delivery have experienced a decline of 1.1%, totaling $2.529/mmBtu^1^.

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