Commodities June 5, 2026 02:04 PM

US Rig Count Rises for Seventh Week, Reaches Highest Level Since May 2025

Weekly Baker Hughes tally shows small net gain as oil rigs climb and gas rigs slip; rig count edges above year-ago level

By Ajmal Hussain
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US energy companies increased the combined oil and natural gas rig count for a seventh straight week, the longest run of additions since May 2022, according to Baker Hughes. The total rose by one to 563 in the week ending June 5, with oil rigs up and gas rigs down. The tally is modestly higher than a year earlier and reflects an early indicator of future production.

US Rig Count Rises for Seventh Week, Reaches Highest Level Since May 2025

Key Points

  • Combined oil and gas rig count rose by one to 563 in the week ending June 5, the seventh straight weekly increase.
  • Oil rigs increased by two to 431 (highest since June 2025) while gas rigs fell by one to 124 (lowest since January 2026); miscellaneous rigs held at eight.
  • Total rigs are four units, or about 1%, higher than the same week a year earlier; rig counts had declined in 2025, 2024 and 2023 as firms focused on returns and debt reduction.

US energy firms extended a streak of weekly rig additions to seven, the longest uninterrupted run since May 2022, according to a weekly report from Baker Hughes.

Key figures from the week ending June 5:

  • The combined oil and natural gas rig count rose by one to reach 563.
  • Oil-directed rigs increased by two, bringing that count to 431.
  • Gas-directed rigs fell by one to 124.
  • Miscellaneous rigs remained unchanged at eight.
  • The total rig count is four rigs, or roughly 1%, higher than the same period a year earlier.

The report notes this is the highest combined rig level since May 2025. The oil rig tally, at 431, is the highest since June 2025, while the 124 gas rigs mark the lowest gas rig count since January 2026.


Industry observers often view the rig count as an early gauge of future oil and gas output. The report underscores that, despite recent weekly gains, the US rig base has experienced multi-year contractions in prior periods: rig counts fell 7% in 2025, 5% in 2024 and 20% in 2023. Those declines were tied to a period of lower US oil prices, when many energy companies prioritized shareholder returns and debt reduction over expanding production.

Market expectations for crude are shifting. Spot US West Texas Intermediate crude prices are projected to increase in 2026 because of the Iran War, following price declines across 2023, 2024 and 2025. The US Energy Information Administration projects US crude output will climb modestly from a record 13.6 million barrels per day in 2025 to 13.7 million barrels per day in 2026.

As a weekly snapshot, the rig count provides an early signal about drilling activity and potential near-term changes in production, but it is one of several indicators market participants monitor when assessing future supply dynamics.

Risks

  • Persistently lower oil prices could lead companies to prioritize shareholder returns and debt reduction over production growth, affecting future rig counts and output - impacts oil and gas producers, energy services.
  • Geopolitical developments cited as a factor for projected price increases (the Iran War) introduce price volatility that could affect exploration and production economics - impacts crude markets and downstream sectors.
  • Rig count is an early indicator but does not guarantee production changes; reliance on this metric alone may misrepresent short-term supply dynamics - impacts traders, refiners, and market analysts.

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