The US oil-rig count resumed its climb this week, rising by 29 to 551 according to Baker Hughes. It was the biggest one-week increase since April 2013.
The number of active gas rigs rose by six to 142, with miscellaneous rigs unchanged at one. The combined count jumped by 35 to 694.
Last week, the oil-rig count fell for the first time in 11 weeks.
Schlumberger, the world’s largest oilfield-services company, reported fourth-quarter results and an earnings loss on Friday. But the firm also signaled that it expects growth ahead with higher demand for its services from drillers.
“We expect the growth in investments to initially be led by land operators in North America, where continued negative free cash flows seem less of a constraint, as external funding is readily available and the pursuit of shorter-term equity value takes precedence over full-cycle return on investment,” said CEO Paal Kibsgaard in the earnings statement.
Kibsgaard said he expects the balance of oil supply and demand to tighten as OPEC members follow their agreement to cut production.