US Drillers Cut Oil and Gas Rigs for Second Week: Baker Hughes Report

US drillers cut oil and gas rigs for the second week in a row, according to Baker Hughes. Chevron's exports of Venezuelan oil are expected to resume this month, and Enbridge sees strong demand for more oil pipeline capacity from Canada to the US Gulf. Oil prices fell over $2 a barrel due to concerns about OPEC+ supply and US jobs data. Exxon beat profit estimates and is eyeing acquisition opportunities.

US drillers continue to cut oil and gas rigs for the second consecutive week, according to Baker Hughes. This trend reflects a broader market sentiment of cautious optimism amidst persistent economic uncertainties. Heating oil futures tumbled toward $2.30 per gallon in early August, marking a one-month low, as softening demand expectations and swelling supply converge to weigh heavily on prices [1]. Mounting concerns over US economic growth, following a string of weak data including slowing job gains and the sharpest contraction in factory activity in nine months, have dampened the fuel demand outlook. This was compounded by fresh tariff announcements from President Donald Trump, which fueled broader market uncertainty and pressured energy prices across the board [1].

Chevron Corp expects its exports of Venezuelan crude to the U.S. to resume this month, following a restricted license received from the U.S. Treasury Department to operate in the sanctioned country and do oil swaps [2]. The exports will begin with a "limited amount," and Chevron's CEO Mike Wirth does not expect the flows to have a material impact on third-quarter results. Enbridge sees strong demand for more oil pipeline capacity from Canada to the US Gulf, indicating a potential increase in oil supply to the US market [3].

Oil prices fell by over $2 a barrel due to concerns about OPEC+ supply and US jobs data. Exxon Mobil beat profit estimates in the second quarter, achieving its highest Q2 Upstream production since the Exxon-Mobil merger more than 25 years ago. The company's earnings of $7.1 billion, or $1.64 per share, exceeded analyst estimates of $1.47. Exxon is also eyeing acquisition opportunities, with CEO Darren Woods stating that the company is looking at buying other oil companies [4].

References:
[1] https://www.tradingview.com/news/te_news:474777:0-heating-oil-drops-to-1-month-low/
[2] https://www.reuters.com/business/energy/chevrons-exports-venezuelan-oil-expected-resume-this-month-ceo-says-2025-08-01/
[3] https://finance.yahoo.com/news/exxon-sees-m-possibilities-oil-123000674.html
[4] https://www.benzinga.com/markets/earnings/25/08/46795989/exxon-mobil-hits-record-production-ceo-reaffirms-hunt-for-value-driven-deals