According to the latest Baker Hughes data, U.S. rig counts have continued their sideways move, falling by one w/w to 486. Rig count has remained in the 472-488 range for 41 consecutive weeks. The Permian Basin rig count fell by one w/w to 300, having previously been below 300 for just one week in the past three years. The main change was in the Texas portion of the Delaware Basin where drilling fell by three w/w to a three-year low of 62 rigs. In contrast, the U.S. gas rig count rose by two w/w to 102, with the Haynesville and Marcellus rig count unchanged at 30 and 26, respectively. Likewise, positioning across the energy complex remains mainly negative, with traders concerned about Trump’s tariffs as well as a potential return of Russian oil flows.
