United States drillers idle 13 more rigs: Baker Hughes

Crude oil fell early Wednesday after an Energy Department report showed more oil flowing into already well-stocked tanks across the U.S. After Wednesday's rig count data, West Texas Intermediate crude futures in New York were down by less than 1%, near $42.83 per barrel.

Melek said the market would stay skeptical of the Baker Hughes data until there is greater evidence that a lower rig count results in less output. The most recent time crude prices were much higher than now was in May and June, when United States futures averaged $60 a barrel.

"We've seen oil production isn't responding anywhere near as quick as what's suggested by the oil rigs", he said.

The gas rig count fell by 4, bringing the total to 744. The Permian basin was this week's biggest loser with drillers idling five oil-directed rigs; the Mississippian, however, saw the addition of three rigs.

In response to those higher prices, drillers added 47 rigs over the summer. The number of active machines has dropped for 12 of the past 13 weeks.

Inventories have climbed even after United States oil drillers have idled about 65 per cent of the country's rigs since October 2014.

Drillers removed nine oil rigs in the week ended November 25, bringing the total rig count down to 555, the least since June 2010, oil services company Baker Hughes Inc said in its closely followed report.