According to a data published by Baker Hughes, oil rigs operating in the US rose last week to a 18 year high for the second week in a row, helping boost the country's overall rig count to the most since January 2009.

As per report, oil rigs increased by 8 to 474, the highest level since December 13th 1991, when oil prices were trading at about USD 20 a barrel. The oil rig count has more than doubled from a low of 179 in June 2009, as prices have risen 17%.

The combined oil and gas rig count increased by 20 or 1.4% to 1,427, the highest level since January 30th 2009. It reached a 22 year high in 2008, peaking at 2,031. Half of the weekly increase came from Texas and Oklahoma, which together are home to about 50% of US rigs.

Crude for April delivery fell USD 1.52 or 1.9% to settle at USD 80.68 a barrel on the New York Mercantile Exchange on Friday as the dollar strengthened against the euro, curbing the appeal of commodities as an alternative investment.

Gas for April delivery gained 8.4 cents or 2.1% to USD 4.169 per million British thermal units. Baker Hughes also reported that miscellaneous rigs, which primarily drill for geothermal energy, were unchanged from the week before last at 14.

Texas and Oklahoma each jumped by five rigs to 595 and 115, respectively. Louisiana's rig count increased by four. California, Colorado and West Virginia gained three each, Alaska rose by two, and Kansas, North Dakota and Virginia each gained one rig. Kentucky and New Mexico lost two. Alabama, Pennsylvania, Tennessee and Utah declined by one each. Tennessee lost its only rig.

Rigs on land increased by 21 or 1.6% to 1,362. Rigs in inland waters lost one to 14. The rig count for offshore production was unchanged at 51. The Gulf of Mexico rig count was also unchanged from the week before last at 49.

(Sourced from www.bloomberg.net)