The following is an excerpt from Teresa Rivas | October 2, 2015 | Barrons.com |
Stocks reversed their earlier losses to end higher Friday, and oil also had a good day, ending up on news that drillers had removed even more rigs from operation.
Crude oil for November delivery climbed 2% to $45.54, and the United States Oil Fund (USO) ended up 1.3%. The Energy Select Sector SPDR (XLE) climbed more than 4%.
The rally came as U.S. companies pulled another 26 rigs, the biggest rig reduction since April and the fifth consecutive week of decline.
That puts the total rig count at 614, which, as Reuters reports, is less than half of the 1,591 rigs in operation a year ago and well below the 1,609 all-time high rig count, reached last October:
And the situation for natural gas was even starker:
Baker Hughes also reported a reduction in natural gas rigs, bringing total U.S. rigs were to a 13-year low. Natural gas rigs were down two this week to 195, the lowest level in at least 28 years, according to the Baker Hughes data going back to 1987.
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