The U.S. drilling-rig count, which recorded its 26th straight weekly decline this week, is close to bottoming out ahead of a recovery in the second half of the year, mainly in the Permian and Eagle Ford shale plays in Texas, analysts said.
Oil prices are expected to hold roughly at current levels over the next three to six months after OPEC agreed on Friday to stick by its policy of unconstrained output for another six months, but did not raise its output ceiling.
That implied stability is expected to encourage drilling, especially in cost-efficient U.S. shale basins.
More optimistic industry and equity analysts expect companies to put back to work up to 140 rigs by the end of the year. Most, however, expect the rig count to go up by about 50 if oil prices stay in the $55-$65 per barrel range.
Brent crude hit a high of $63.43 on Friday.
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At the end of this week, 868 oil and gas rigs were working in the United States , including 27 offshore, according to oilfield services provider Baker Hughes Inc.
That was the lowest number since January 2003, and down by seven from the previous week.
"Most additions (this year) will be focused on the Permian, the No. 1 play right now ... No. 2 is going be the Eagle Ford," said Gabriele Sorbara , an analyst at Topeka Capital Markets.
