Crude Jumps After Biggest 2-Week Rig Count Decline In 4 Months

With Saudis blowing off an OPEC leaders meeting, Iran slashing prices to 3 year lows inventories rising rapidly but US production dropping quickly, and Goldman calling for $20 oil possible, it has been a busy (and mixed) week for oil news. Add to that the seasonal lull amid refinery slowdown/repairs and Today's 10 rig drop in US oil rig count to 652 (following last week's 12 rig drop) is the biggest 2-week drop in 4 months just adds to the noise with Texas rig count dropping most (-9 to 366). Crude prices are rising modestly as US rig count drops back to 2-months lows.

• *U.S. OIL RIG COUNT DOWN 10 TO 652, BAKER HUGHES SAYS
• *WILLISTON BASIN OIL RIGS DOWN 1 TO 71, BAKER HUGHES SAYS
• *PERMIAN OIL RIGS DOWN 1 TO 248, BAKER HUGHES SAYS
• *EAGLE FORD OIL RIGS DOWN 1 TO 77, BAKER HUGHES SAYS
• *CANA WOODFORD OIL RIGS DOWN 1 TO 34, BAKER HUGHES SAYS

• *U.S. TOTAL RIG COUNT DOWN 16 TO 848 , BAKER HUGHES SAYS

This is the lowest total rig count since January 2003...

and the result...

Finally, just a "thinking out loud" chart....

Charts: Bloomberg

Comments

[sun tzu]

If the frackers are not cutting production then it's the oil majors and their revenues will take an ever bigger hit with prices and production down

[Chad_the_short_...]

Shales are out of money and it takes money to drill. 

[spastic_colon]

this is how you front run a no rate hike decision next thursday......make up rig counts.....weak dollar strong commodity.  This and muppet headlines like goldman's $20 oil possibility....retail is alredy too late.