The oil market is almost back to March prices

Today, the oil market is growing noticeably. July Brent futures rose 2.37% to $ 33.66 per barrel, and June WTI futures rose 3.82% to $ 30.93 per barrel.

The oil market is rising to its highest level since March 17. Continued production cuts support growth. Also, there are signs of a gradual recovery in fuel demand. More and more countries are easing restrictions imposed to stop the spread of the coronavirus pandemic.

In the US, meanwhile, the number of drilling rigs continues to decrease, which reduces concerns about the lack of free space in oil storage facilities. The number of operating oil and gas installations has fallen to the lowest since the 1940s.

Their number last week decreased by 35-to 339 units, according to data from the American oilfield services company Baker Hughes. A year earlier, 987 drilling rigs were operating in the country.

Including the number of oil, installations fell by 34 to 258, the lowest since July 2009. In the middle of May last year, there were 802 units.

The number of drilling rigs began to decline from mid-March due to the fall in oil prices caused by the COVID-19 coronavirus pandemic, as well as the “price war” between Saudi Arabia and Russia.

Piper Sandler analysts predict that the number of drilling rigs in the US could fall to an average of 528 this year, compared with 943 in 2019, and then continue to fall to 215 next year.