US oil rig count falls for 27th straight week (USO, OIL, WTI, VDE)

Akin Oyedele

The US oil rig count fell for a 27th straight week.

The number of oil rigs in operation fell by seven to 635 this week, the lowest since August 6, 2010, according to data from driller Baker Hughes.

The combined count fell by nine to 859.

In the prior week, the number of oil rigs fell by four to 642, the lowest level since August 16, 2010.

The combined count fell by seven to 868, the lowest level since January 24, 2003.

Following the data, West Texas Intermediate crude oil gained slightly but was still down by less than 1%, near $60.36 per barrel.

Production of crude oil is still on the rise despite the plunge in rig counts we've now seen for 26 straight weeks.

In its short-term outlook released on Tuesday, the Energy Information Administration estimated that US oil production rose by 9.6 million barrels in May. That's about 400,000 barrels higher than the average production level in the fourth quarter of 2014.

The EIA further forecast that US crude-oil production would begin to decline from this month until February 2016.

Here's the latest chart showing the plunge:

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