According to the most recent data from Baker Hughes, the number of US rotary rigs drilling for oil was down by 3 rigs last week, which brings the current number of US rigs drilling for oil to 538. Rigs directed toward drilling for natural gas are down 6 to 162. Current year-on-year oil exploration efforts continue to be down 64.1 percent; gas exploration is down by 54.2 percent year-on-year.
In terms of pricing and market activity, both continue to trend quieter than usual due to the year-end holiday season. US domestic spot prices are lateral week-on-week, at approximately $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt), ex-Midwest mill, while offshore futures prices from Korean and Taiwanese producers are also unchanged, $27.50-$29.50 cwt. ($606-$650/mt or $550-$590/nt), DDP loaded truck in US Gulf Coast ports. Although there could be some price movement when buyers and sellers return from the New Year holiday, price firming is not expected to take place until oil prices, and drilling activity, begin to improve.