1339 ET - The number of rigs drilling for oil in the U.S. fell by eight this week to 465, oil services company Baker Hughes reports, reaching its lowest level since November 2021 as producers react to low oil prices. "The falling price of oil has surely contributed to curb investment in U.S. shale during the course of the past few months. But another factor that has come to bite companies is the rising wellhead oil breakevens," Francisco Blanch of Bank of America Securities says in a note. And with shale productivity gains slowing, "total U.S. crude oil supply could peak as soon as the next 24 months," he adds. Rigs directed at natural gas fell by two this week to 98, down by 1 from a year ago. (anthony.harrup@wsj.com)

(END) Dow Jones Newswires

May 23, 2025 13:39 ET (17:39 GMT)

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