U.S. oil rig count posts largest weekly gain since 2022

(Bloomberg) – The number of rigs drilling in the U.S. shale patch rose by the most in more than four years, the latest sign of a resurgence in domestic activity as the war in Iran drives up oil prices.

Rigs targeting crude rose by 10 to 425 this week, the biggest weekly jump since April 2022, according to data released by Baker Hughes Co. on Friday.

That adds to a four-week streak of gains for the rig count, a measure widely regarded as a gauge for future U.S. oil output. Activity has been bolstered by a more than 50% rise in international crude prices as the Strait of Hormuz—a key waterway for the world’s energy shipments—remains effectively closed because of the Middle East conflict.

Oil drilling is definitely picking up with activity gains concentrated in West and South Texas, offsetting declines in natural gas rigs, said Scott Levine, an analyst at Bloomberg intelligence. Shale operators “may see the oil rally as more sustainable,” he added.