Rigs drilling for oil in the US increased by a total of 12 in the week to 16 December to 510 but are still down year-on-year by around 6%.

Baker Hughes’ rig count data is a closely watched indicator of activity in crude markets and while the measure has increased by 20% in the US since the end of September it is still close to its lowest level in four decades.

Absent an improvement in oil prices in 2017, there could be renewed concerns over the financial health of US exploration and production companies amid reports the sector has burned through $151bn (£121bn) of cash since 2009.