Baker Hughes Inc. (NYSE: BHI) just released its weekly rig counts. Despite the fact that oil has recovered handily off its lows, it seems that oil rig operators still are not enthusiastic about operating rigs.
- U.S. Rig Count at 1,126; down 44 from last week and down 666 year-over-year.
- Canadian Rig Count at 220; down 79 from last week and down 290 year-over-year.
- US Offshore rig count is 47; down 4 from last week and down 13 year-over-year.
All the oil ETF’s are still down on the day, although they look off the lows:
- iPath S&P GSCI Crude Oil Total Return Index ETN (NYSE: OIL) is down 1% at $18.10;
- Oil Services HOLDRs (NYSE: OIH) is down 1.2% at $72.48;
- United States Oil (NYSE: USO) is down 1% at $27.94.
Our call is out to 2010, but Baker Hughes is one of our own energy picks which we feel can double by the end of 2010. Baker Hughes has been down all morning along with oil prices and after Credit Suisse downgraded the firm to neutral from outperform.
Jon C. Ogg