Crude oil prices have climbed higher and higher over the course of several weeks. Today, the prices hit eight months highs and settled above $50 a barrel. Some analysts suggest the prices won’t remain high for long, but nonetheless, investors and troubled oil producers are rejoicing in the turnaround. Today, Baker Hughes Incorporated (NYSE: BHI) announced the oil rig count numbers and subsequently gave oil-minded investors yet another reason to cheer.
According to the data, the number of rigs operating within the united states had decreased by 29 from April to May of 2016. In May of 2015, the United States had 889 rigs operating. The number has been cut by as much as half this year. For North America collectively, the rig count for last month was 450. The number had sunk by 28 since the previous month. For further information regarding last month’s rig count, be sure to check out Baker Hughes’ press release.
Many oil producers saw noticeable gains during the day’s trading thanks to the climbing crude oil prices. Chesapeake Energy Corporation (NYSE: CHK) has had a rough year dropping to $1.59 at one point. Today, the company’s stock hit a high of $4.86, before finally closing at $4.67. WPX Energy Inc. (NYSE: WPX) closed with an increase of .18%. The company has also increased its full-year production guidance by 5%. They had previously announced their decision to add another rig to the Delaware Basin. The new addition will be added sometime in October.
Even the troubled Penn West Petroleum LTD. (NYSE: PWE) climbed 11.56% and added an additional .31% after hours. Despite the uncertainty of the company’s future, the elevated oil prices will offer a sigh of relief in some capacity. Is now the time to rethink oil related investments?