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Oil prices continued an upward trend in July and August, although crude from Russia largely offset the loss from the Iranian oil embargo in Europe. Global oil supplies climbed to 90.7 million bpd, with the majority of the increase coming from non-Opec sources. Natural gas prices have staged a tepid recovery in recent months, rising above $3/Mcf, although supplies are still abundant. In the U.S., mostly liquid targets kept demand for drilling rigs strong, although numbers have slipped during the past couple of months. Internationally, drilling has increased modestly to 1,571 rigs, with Canada leading the way, more than making up for falling activity in Latin America.
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