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Oil-rig count rises for 19th straight week

May 26, 2017, 22:36 IST

The Polar Pioneer drilling rig sits docked at the Port of Seattle, Monday, May 18, 2015, in Seattle. Demonstrators opposed to Arctic oil drilling rallied near the rig Monday, showing opposition to a lease agreement between Royal Dutch Shell and the Port to allow the Polar Pioneer and other drilling equipment to be based in Seattle.Ted S. Warren/AP

The US oil-rig count rose by two to 722 this week, according to oilfields-services company Baker Hughes.

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This week marks the one-year anniversary of when the tally bottomed after the downturn. The stunning drop in the number of rigs was a proxy for how hard lower prices were hurting exploration companies.

The count rose for an 18th straight period last week, extending the longest streak of additions since 2011.

The front-month contract for West Texas Intermediate crude oil, the US benchmark, is on pace for a 1.5% weekly decline. Oil fell on Thursday even after OPEC and its allies extended their agreement to lower production by nine months. The Organization of Petroleum Exporting Countries - a cartel of major oil producers - extended the deal that started in January to address the global supply glut that has subdued prices.

But the extension had been widely expected, and traders realized that the robustness of US shale-oil production could undermine OPEC's cuts.

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