The US Energy Information Administration weekly petroleum status report for week ending May 23 shows a higher-than-expected decrease in US crude inventories. Commercial inventories fell from 443.2 million barrels to 440.4 million barrels last week.
The EIA report also shows a plateauing domestic production, as has been the case over the last couple of months. Since the week ending December 27 the US domestic production has decreased by 172 Kbpd and with the major decline in active rigs according to Baker Hughes GE Briefings expects the domestic production to stay approximately at these levels before a further decrease in production.
The latest report from Baker Hughes showed a massive decrease in active rigs in the US. The total rig count fell by 10 rigs to 566 active rigs in the US, the lowest level since 2021. Oil rigs had the biggest decline and fell from 473 to 465 active oil focused rigs in the US. Gas focused rigs fell from 100 to 98 active rigs.
The activity in the prolific Permian basin has dropped significantly over the last twelve months. Rigs active in the basin has dropped from 312 a year ago to 279 active rigs in the latest count. The Permian basin and Eagle Ford had the biggest decline in the May 23 data from Baker Hughes.
Figure 1. West Texas Intermediate Contracts.
Figure 2. West Texas Intermediate the Last Five Days.
US Crude inventories and production.
US commercial crude oil inventories decreased by 2.8 million barrels in the week ending May 23, with market forecasters predicting between 0.5 and 1 million barrel-increase in crude stocks. U.S. commercial crude oil inventories are about 6 percent below the five-year average for this time of year and 14.3 million barrels lower than a year ago. U.S. crude oil refinery inputs averaged 16.328 million barrels per day during the week ending May 23, 2025, 162 Kbpd lower compared to the previous week`s average. Refineries operated at 90.2 percent of their operable capacity last week. American production increased by 9 Kbpd last week at 13,401 million barrels per day, still a plateauing number and well below the production peak of December 2024.
Figure 3. US Crude Stocks including SPR at 841.7 million Barrels.
Figure 4. US Crude Stocks Excluding SPR at 440.4 million Barrels.
US Rig Activity.
The total number of active rigs operating in the US according to Baker Hughes rig count decreased by ten last week, currently at 566. Oil focused rigs decreased by eight last week, at 465 active rigs. Gas focused rigs decreased by two last week now at 98 active rigs. Miscellaneous were flat last week still at three active rigs.
Figure 5. Active Oil Focused Rigs Decreased by Eight Last Week now at 465
Figure 6. Active Gas Focused Rigs Decreased by Two Last Week now at 98
Figure 7. Total Active Rigs in the U.S. Decreased by Ten Last Week, now at 566.
Figure 8. Rig Count in Major Basins.
Baker Hughes has issued the rotary rig counts as a service to the petroleum industry since 1944, when Baker Hughes Tool Company began weekly counts of U.S. and Canadian drilling activity. Baker Hughes initiated the monthly international rig count in 1975. The North American rig count is released weekly at noon Central Time on the last day of the work week.
By the Numbers May 29, 2025.
Disclaimer
This report is under no circumstances intended to be used for or considered as investment advice. This report is to be used as information and general market guidance. The author, GE Briefings and Investornytt cannot guarantee that the information from sources is without incentives, but the author has taken considerable care to ensure that, and to the best of his knowledge, material information contained in the report is in accordance with the facts and contains no omission likely to affect its understanding. Please note that this report is the author’s own research, opinions and conclusions, and the readers are recommended to draw their own conclusions based on other sources than this report, the facts and market picture can change in an instant and therefore the reader must do their own due diligence. The author, GE Briefings and Investornytt cannot be held responsible for the readers investments based on this report.
