US drilling activity rose by eight rigs last week, the largest weekly increase since late May and the second-biggest gain of the year, UBS analysts said in a Wednesday note.
The Permian Basin led the increase, with the rig count up five, including three in the Delaware and two in the Midland. UBS said it was the Permian's largest weekly increase since April.
The bank's data, based on a four-week average, showed 632 active rigs in the Lower 48 states, up 15% from the end of 2025. Oil-directed rigs rose 29% over that period, while gas-directed rigs fell 11%.
Outside the Permian, the Williston and DJ basins each added one rig. The Haynesville lost one rig, while Appalachia gained one.
UBS said stronger oil prices could encourage producers, particularly private operators, to increase drilling. Front-month West Texas Intermediate crude was up 23% this month, while the 2027 WTI contract was up 6%, the analysts said.
The increase in overall activity masked more mixed moves among operators tracked by UBS. Four companies added rigs and four reduced activity, leaving the group's total unchanged at 273 rigs.
UBS said private producers continue to gain market share, with its coverage group accounting for 43% of active Lower 48 rigs, down from 44% a week earlier.
Baker Hughes separately reported a three-rig increase in the US rig count, including a five-rig jump in the Williston Basin, which UBS said was the basin's largest weekly increase in three years.
Exxon Mobil (XOM) had the most active rigs among publicly traded producers tracked by UBS, with 36, followed by Devon Energy (DVN) with 33 and ConocoPhillips (COP) with 30.
UBS said stronger commodity prices and improved balance sheets are supporting the energy sector, while energy-security concerns could boost oilfield-services activity internationally.
In North America, the bank expects service pricing to improve if rig activity remains elevated, particularly with oil prices above $70 a barrel.
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