HOUSTON (ICIS)--The US oil rig count dropped for the second straight week, according to the weekly drilling rigs report released on Friday by oilfield services firm Baker Hughes.
Crude price uncertainty after a $30/bbl collapse during Q4 2018 has weighed on drillers' spending plans for 2019 and likely figuring into the rig count decline.
Despite falling, the oil rig count remains higher year on year. Its movement is closely watched as a signal of coming US crude production, which remains at record levels and has driven global oversupply concerns.
The US Energy Information Administration (EIA) latest figures project that the US averaged 10.9m bbl/day in 2018 and will average 12.1m bbl/day in 2019.
US output will likely be offset by declines in other regions.