U.S. energy companies added oil rigs for the first time in three weeks, Baker Hughes, a GE company, said in its weekly report.
Drillers added two oil rigs in the week to Aug. 31, bringing the total count to 862, according to the report.
The oil rig count rose by one in August after gaining three rigs in July and losing one in June.
U.S. crude futures were on track to post their second straight weekly gain on concerns about an expected fall in supply from Iran due to U.S. sanctions and Venezuela’s declining output. For the month, prices were set to rise about 1.7%.
The U.S. rig count, an early indicator of future output, is much higher than a year ago when 759 rigs were active. Energy companies have been ramping up production in tandem with OPEC’s efforts over the past year-and-a-half to cut global output.
So far this year, U.S. oil futures have averaged $66.42 per barrel. That compares with averages of $50.85 in 2017 and $43.47 in 2016.
Looking ahead, crude futures were trading at $70 for the balance of 2018 and $67 for calendar 2019.
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