The Baker Hughes U.S. oil rig count has risen from 418 to 424. This information is for your awareness and is not a suggestion for trading or investment choices. It’s important to research thoroughly before making any investments. Be aware that the information might have inaccuracies and is not guaranteed to be up to date.

Investment Risks

Trading in open markets carries risks, including the potential for total investment loss and emotional stress. Any risks, losses, or costs related to investments are the investor’s responsibility. The opinions in this article are those of the author and do not reflect FXStreet’s official position. The author has no ties to the companies or stocks mentioned. FXStreet does not provide personalized investment advice and is not liable for any errors or omissions in the use of this information. Treat this content as a general resource. Neither FXStreet nor the author are registered investment advisors. This content does not aim to serve as investment advice. The U.S. oil rig count has slightly increased to 424, suggesting that producers may be considering increasing future output. This could hint at bearish sentiment, indicating more supply may come online in the coming months. This uptick in drilling activity coincides with the latest EIA report, which revealed a surprising increase in inventory by 2.1 million barrels. This suggests that supply is already strong. With WTI crude futures around $85, prices are at a level that could support bringing some production back online. However, it’s important to remember that the current rig count is still well below the 500-plus levels we saw in late 2024, so this isn’t a major expansion.

Oil Demand Trends

On the demand side, recent IEA forecasts have reduced global oil demand growth for the fourth quarter of 2025, due to weaker economic activity in key markets. We are also anticipating updates from the upcoming OPEC+ meeting, as their production decisions will greatly influence the market more than the small increase in U.S. rigs. Together, these factors create a cautious climate for oil prices. With these signals, we might look into strategies involving derivatives that could benefit from stable prices or slight declines. This could include buying put options to safeguard against a potential dip below the $80 support level. Another strategy could be selling covered call options on existing long positions to generate income if we don’t foresee a significant price rise soon. We must stay aware that the energy market is sensitive to sudden geopolitical developments, which can quickly change supply trends. Therefore, tracking weekly inventory data and rig counts will be crucial to see if this pattern continues. Any significant changes will require us to reevaluate our strategies. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now