US rig count keeps falling even as oil prices stay elevated
📌 Baker Hughes showed total U.S. oil and gas rigs fell by 9 to 543 in the week ending March 27, marking a second straight weekly decline and leaving the count 49 rigs below the same period last year.
📉 Both major segments weakened, with oil rigs down to 409 and gas rigs down to 127, while the Permian Basin also slipped to 241. This suggests production expansion remains cautious even in the most important drilling region.
🛢️ The key point is that the decline came even as oil prices stayed high because of Iran-related risks and concerns around the Strait of Hormuz. That indicates U.S. shale producers are still prioritizing capital discipline and cash flow efficiency over rushing into new drilling.
⚖️ For the energy market, this leans supportive for crude prices because future U.S. supply has not risen in line with higher prices. On the other hand, oilfield services may not benefit clearly yet if drilling activity remains constrained.