Last week the U.S. oil and gas rig count increased by 15 to a total of 462. Canada rig count up seven to new total of 102 according to Baker Hughes report.
The biggest gains were in Texas where 15 new rigs were brought online with the Permian Basin adding eight.
At the time the rig count was released, West Texas Intermediate was trading at $43.94, but slumped by $.83 midday Friday.
In conclusion…The decline in price is attributed to a ramp-up in drilling fields that are profitable with oil below $50 per barrel, adding to supply surplus.