{"id":71427,"date":"2026-09-04T13:38:10","date_gmt":"2026-09-04T17:38:10","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-rig-count-holds-steady-as-oil-rigs-rise-fed-reverse-repo-usage-dips\/71427\/"},"modified":"2026-09-04T13:38:10","modified_gmt":"2026-09-04T17:38:10","slug":"us-rig-count-holds-steady-as-oil-rigs-rise-fed-reverse-repo-usage-dips","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-rig-count-holds-steady-as-oil-rigs-rise-fed-reverse-repo-usage-dips\/71427\/","title":{"rendered":"US Rig Count Holds Steady as Oil Rigs Rise; Fed Reverse Repo Usage Dips"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Total US rig count remained flat at 588<\/strong> for the week ending September 4, 2026, as a slight increase in oil drilling offset a decline in gas rigs.<\/li>\n<li><strong>US oil rig count rose by 2 to 449<\/strong>, marking a modest uptick in domestic crude exploration activity.<\/li>\n<li><strong>Gas rig counts fell by 2 to 130<\/strong>, reflecting continued pressure on natural gas drilling despite recent price fluctuations.<\/li>\n<li><strong>Federal Reserve reverse repo usage declined to $675 million<\/strong> from two counterparties, down from $702 million in the previous session.<\/li>\n<\/ul>\n<p>The U.S. energy sector showed signs of diverging activity this week as the latest data from Baker Hughes (<a href=\"\/stock\/BKR\">BKR<\/a>) revealed a shift in drilling priorities. While the <strong>total rig count held steady at 588<\/strong>, the internal dynamics shifted with <strong>oil rigs increasing by 2 to reach 449<\/strong>. This increase comes as producers navigate a complex global supply environment and fluctuating WTI crude prices.<\/p>\n<p>Conversely, the natural gas segment saw a pullback, with <strong>rotary gas rigs dropping by 2 to a total of 130<\/strong>. This decline suggests a cautious approach from gas producers amid high storage levels and shifting seasonal demand forecasts. <em>Market analysts note that the stability in the total count reflects a &quot;wait-and-see&quot; approach by major shale operators in basins like the Permian and Haynesville.<\/em><\/p>\n<p>On the monetary front, the Federal Reserve&#39;s overnight reverse repo (RRP) facility saw slightly lower demand on Friday. <strong>Two counterparties took a total of $675 million<\/strong> at the Fed&#39;s operation, compared to <strong>$702 million from four bids<\/strong> in the prior session. The continued low usage of the facility, which peaked at over $2 trillion in previous years, indicates that liquidity is being more efficiently absorbed by the broader private repo market and Treasury bills.<\/p>\n<p>In specific basins, the <strong>Permian Basin added 1 rig<\/strong>, bringing its total to a dominant position in the U.S. landscape. Other regions like the <strong>Niobrara also saw a 1-rig increase<\/strong>, while the <strong>Haynesville basin lost 1 rig<\/strong>. These minor fluctuations highlight the localized nature of current drilling economics, where the most cost-efficient plays continue to attract the bulk of capital expenditure.<\/p>\n<p>The broader economic context remains a focal point for investors, as the steady rig count and low Fed facility usage suggest a period of relative equilibrium in both energy production and financial system liquidity. <em>As the fall season approaches, market participants will be closely watching for any shifts in drilling activity that could signal production trends for the first half of 2027.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Total US rig count remained flat at 588 for the week ending September 4, 2026, as a slight 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