US drillers added five oil rigs in the week to April 20, bringing the total rig count to 820.
Analysts at Simmons & Co estimated that the total oil and natural gas rig count has increased this year. The number of rigs active in the United States is expected to rise in 2019. So far this year, the total number of active units in the US has averaged 974, up from 876 rigs in 2017.
The US rig count is considered an early indicator of future oil production. In its monthly energy outlook, the Energy Information Administration (EIA) raised the forecast on 2019 US crude output to 11.44 million barrels per day. Last month, it expected an increase to 11.27 million bpd.
For all of 2018, the EIA expects that US crude production will average 10.69 million bpd. Analysts at Cowen & Co noted that 58 of the 65 exploration and production (E&P) firms they track have already indicated an 11% increase this year in planned capital spending.
