U.S. energy firms added six oil rigs last week despite a decline in crude futures on concerns about the market situation.
Citing data from oil services company Baker Hughes Inc, Reuters reported that the U.S. rig count rose for the third straight week, the longest consecutive gain since September 2014, to reach 670 , the most since May.
Energy firms continued to add rigs even as the U.S crude futures traded last Friday for just $45 last a barrel compared to $60 in May and June, when the companies announced their plans to increase utilization.
The Wall Street Journal noted that the number of oil rigs is closely monitored as this serves as a gauge of oil industry activity. It added that the rig count had nosedived for 29 consecutive weeks and has been fluctuating since.
The oil industry has been wary of operating more facilities as prices have dropped by 60 percent from June 2014 to a six-year low due to surging production compared to a slower increase in demand.
The paper added that the 670 operating oil rigs are much lower than the peak of 1,609 in October, and more are expected to be on the way with shale-oil companies saying they are prepared to use their rigs again.
However, Reuters noted that U.S. crude futures are set to decline for the sixth straight week as the industry continues to struggle from concerns of a supply glut and unimpressive demand growth.
The wire agency added that the surplus crude is being turned to refined products, driving up the stocks of both in the United States near record levels since the early 1990s.
Reuters said that oil companies have halted operations of a number of rigs and have cut thousands of jobs in reaction to the falling prices. Still, U.S. crude production reached 9.5 million barrels per day, last week, the highest since the early 1970s.
