The number of US oil and gas rigs remained at 539, reflecting a decline of 47 rigs over the past year. The government's favorable policies for the oil industry, such as reduced regulations and tax incentives, have not significantly boosted drilling activity. Oil inventories are projected to rise dramatically, leading to a potential supply glut. Additionally, global oil demand is decreasing, especially in China. As a result, the price of oil is under pressure and hovering near break-even levels for new drilling.
The number of operating US oil and gas rigs held flat at 539 last week, hovering near four-year lows and down 47 rigs in the last 12 months.
Oil inventories are set to accumulate at 2.96 million barrels per day next year, pushing the world towards a record supply glut.
Global oil demand is growing at less than half the rate seen in 2023, with consumption in China set to peak earlier than expected in 2027.
The price of oil is under pressure as the US crude oil benchmark hovers near the $60 per barrel break-even point for newly drilled wells.
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