While producers theoretically require prices above $86 per barrel to justify new drilling, the recent $18 climb over the past fortnight has not translated into increased activity. This stagnation persists even as the industry maintains near-record production levels, averaging 13.832 million barrels per day over the last month.

Simultaneously, U.S. crude inventories face persistent strain from robust export demand and ongoing government efforts to mitigate supply disruptions. The Strategic Petroleum Reserve has been drawn down to 311.4 million barrels, reaching its lowest point since 1983. While the oil rig count declined, the U.S. gas rig count saw a marginal increase of one to 127. Across the border, Canadian operations showed more movement, with oil rigs rising by two to reach 138, breaking a two-week streak of declines.