Crude oil prices are expected to crash further in the volatile global market as the United States deploy more rigs for operations.
Findings have revealed that the prices are expected to fall following speculation that the development will culminate in increased exploration, production and supply of crude oil.
A market source said:“Oil prices may likely continue to crash because of the speculation that the use of more rigs will lead to more output and supply to the weak market.”
Baker Hughes Incorporated indicated that the international rig count for July 2015 was 1,118, down 28 from the 1,146 counted in June 2015, and down 264 from the 1,382 counted in July 2014.
The international offshore rig count for July 2015 was 264, down 13 from the 277 counted in June 2015, and down 72 from the 336 counted in July 2014. It maintained that the average U.S. rig count for July 2015 was 866, up 5 from the 861 counted in June 2015, and down 1,010 from the 1,876 counted in July 2014.