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Here comes the Baker Hughes rig count ...

Dec 16, 2016, 23:17 IST

REUTERS/ Vivek Prakash

Oilfield-services giant Baker Hughes will release its weekly count of US oil and gas rigs at 1 p.m. ET.

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The count of oil rigs plunged with oil prices from late 2014, representing one of the best anecdotes of how the downturn was impacting US shale drillers. However, a recent rebound has lifted the tally nearly back to where it began this year.

The oil rig count rose for a 5th straight period last week, by three to 477. One gas rig was brought online, taking the total to 119. With one miscellaneous rig remaining in use, the combined tally increased by four to 597.

"We expect activity levels to rise throughout 2017 as E&Ps [exploration and production companies] seek to grow production into an improving commodity price environment," said Kurt Hallead, co-head of global energy research at RBC Capital Markets, in a note on Friday.

"Given our commodity price outlook (average of US$56/$63 WTI in 2017/18), we think oilfield services stocks are still in the early innings of a cyclical recovery, although the recovery is likely to remain choppy in the near term."

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