July 2022
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Industry at a Glance

Despite rising interest rates and fear of economic recession, crude prices climbed in July, as the war in Ukraine continued to restrict Russian supply. WTI surged 4.8%, hitting $114.84/bbl, with Brent trading at $122.71/bbl, up 8.3% compared to May.
Craig Fleming / World Oil

Despite rising interest rates and fear of economic recession, crude prices climbed in July, as the war in Ukraine continued to restrict Russian supply. WTI surged 4.8%, hitting $114.84/bbl, with Brent trading at $122.71/bbl, up 8.3% compared to May. Higher commodity prices have caused U.S. operators to cautiously increase drilling activity, but high debt and a lack of bank financing have slowed a more vigorous upturn. However, the U.S. rig count continued its upward trajectory, averaging 738 units in July, up 2.6% from the 719 tallied in May. New Mexico gained eight rigs to average 106, with Texas adding seven rigs, up to 358. International activity averaged 910 rigs in May, just three fewer than in April, as additions in the Middle East (+14) and Asia (+9) offset a 14-unit decline in Canada due to spring thaw. 

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Craig Fleming
World Oil
Craig Fleming Craig.Fleming@WorldOil.com
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