On May the 5th, Baker Hughes Incorporated (NYSE: BHI) released their monthly international rig count numbers. The firm confirmed that the number of international rigs during April of 2017 was up 13 to 956. March of 2017 had 943, while April of 2016 had 946 international rigs. The average rig count in the United States for the month of April was 853 equating to an increase of 64 rigs compared to March. The Canadian rig count was down by 145 from March 2017 to April 2017. The average Canadian rig count topped out at 108, while the figure rested at 253 in March of the same year.
Overall, the worldwide rig count took a small dip dropping from 1,985 in March to 1,917 in April of 2017. April’s worldwide rig count was significantly higher than the same month the previous year, with an increase of 493 rigs year over year. Nevertheless, oil prices now trade at a 5-month low after taking a massive slide on Thursday. The drops come despite reassurances from Saudi Arabia that Russia was on the verge of joining OPEC in extending cuts. Saudi Arabia’s OPEC Governor Adeeb Al-Aama recently told Reuters that OPEC and non-OPEC countries were very close to striking a new deal regarding supply cuts. Despite the news, a Kremlin spokesperson admitted a decision had not yet been made regarding Russia’s involvement in the cuts.
It is believed that OPEC will agree to extend cuts when the group meets on May 25. However, a more significant cut is unlikely. Previously, OPEC and non-OPEC countries agreed to cut production by 1.8 million barrels a day for the first 6 months of the year. Despite the previous and impending cuts, climbing oil output from the United States weighs heavily on traders. Slow Chinese demand has also helped to drag down oil prices. At the time of this writing, crude oil prices sit close to the 45.50 mark.