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Crude Slides After US Oil Rig Count Rises For First Time Since December
The US oil rig count rose 12 last week - the first rise since December and biggest absolute rise since October 2014. WTI Crude is sliding on the news... pushing near a $56 handle again.
- *U.S. OIL RIG COUNT UP 12 TO 640, BAKER HUGHES SAYS
- *U.S. TOTAL RIG COUNT UP 3 TO 862, BAKER HUGHES SAYS
- *OIL RIGS IN PERMIAN BASIN RISE BY ONE TO 231: BAKER HUGHES
- *OIL RIGS IN TEXAS'S EAGLE FORD JUMP BY THREE TO 86
- *OIL RIGS IN WILLISTON BASIN RISE BY TWO TO 76: BAKER HUGHES
- *OIL RIGS IN GRANITE WASH GAIN BY TWO TO 12: BAKER HUGHES
- *OIL RIGS OUTSIDE MAJOR U.S. BASINS RISE BY TWO TO 143
Biggest rise in rig count since October
Oil prices are dropping...
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excellent
The reason for the crash in crude is simple, old fashion, mal-investment, but why were those investments made. To know where crude is going you have to do a proper root cause analysis.
Those $60 hedges will help some people at least.
Now to see which companies shorted futures so they can make money as oil falls in q3.
Yesterday, I paid $2.77 a gallon for gasoline I bought at a Valero station in Long Island. I asked the clerk about the price and she said it was $2.89 before the price went down on Sunday. That is some drop in price.
Once that "third lane" opens up on the Panama Canal next year the cost of shipping fuel to the West Coast will COLLAPSE.
Interestingly Tesla is up big today...
12 is not a huge number, but it is not the number they wanted......
… why don’t they change it to the number they wanted ?
US is still importing about 7.5 million barrels per day - about the same as China.
"At ten cents a barrel" no doubt.
Which is then refined and sold at a HUGE mark up to American consumers.
That would include airline companies I might add which says to me the cost of transporting goods inside the "United States" is REALLY low.
Sure looks good for the asphalt plant...
They were losing a shit-load of "other peoples money" fracking at $60 a barrel,so they decided to double down,and lose a shit-load more of "other peoples money" at $55 a barrel..
not so sure about that
This is GREAT news! Cheap oil means the US can get back to making Hot Rods and Muscle cars. This is what America does best! For every cloud there is a silver lining.
BURNING RUBBER IN THE HELLCAT!
As ever.
The number of rigs drilling is not really all that important anyway. Oil companies, and gas companies as well, can drill numbers of wells and then let them sit in inventory until needed, until the spot price comes up to what they want. The really difficult and really expensive part ofthe process is "completion", the fracking. These days its done in stages, 100 to 200 fet at a time, along the horizontal portion of the well bore. No need to frack any wells before the spot price gets up to what you need to break even or make a profit.
Your business will not last long on zero revenue...
It's a good thing, too. You know, what with barrels per day per well in the Bakken steaily declining.
Rapprochement Russia-Saudi will see the Arabs closing the spigots. Then all the shale producers' hedges roll off so all the crappy ones go bust. Then, some ST Chinese recovery which contrary to most views expressed on ZH is starting (read China Beige Book). Buy oil.
Market is setting the new temporary level for oil prices. Looks like the range is 55-61.
This is very close to the average price point for profitability of the average fracked well.
Unexpectedly!!!