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Crude Surges After US Oil Rig Count Collapses To May 2002 Lows
For the 6th week in a row, Baker Hughes reports a decline in US oil rig counts. With a huge 29 rig drop - the largest in over 5 months - the total oil rig count is 809, the lowest since May 2002. The reaction is a stick-save buying panic surging crude into the green on the day.
Lowets rig cont since May 2002...
and the reaction..
Charts: Bloomberg
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Just remember to dump your crude before next week's 4+ million bbl inventory build.
Funny how that works....One third of the rigs producing more oil than the three thirds plus consumers not buying the cheap gasoline results in large inventory builds. Quick, someone call Ripley. LOL
J
Yay higher oil prices! Which means higer gas prices from the new established higher low. I can't wait to get fucked!
It will improve the economy by making all of us pay more so that 1,600 oil workers can earn a "living wage" and stimulate the economy by buying pickup trucks and bass boats.
The BP by my office had regular for $2.39 on Wednesday. My car takes premium and the price wasnt advertised, so I pulled in.
The price for premium was $2.99
Once I saw the price at the pump, I walked into the store, shouted "Fuck your 60 cent differential on premium" and walked out.
Apu wasnt impressed.
Do everyone a favor, don't use BP. They Destroyed the Gulf of Mexico.
Don't use BP
Don't use BP
Don't use BP
A subcontractor was drilling that hole and they made some bad decisions, most BP people found out about it the same way you did. If I were to cry about the Gulf"s health I would cry about all the upstream chemicals and sewage from coastal cities, not so much about pure unrefined oil.
LOL. Pickup trucks and Bass/water ski boats. Its what every american is entitled to.
aint going to happen....http://www.bloomberg.com/news/articles/2015-09-23/china-commodity-deluge...
These spikes and drops seem to involve prices of a dollar or two per barrel (3%-5%). It looks like "they" really don't want it to go much below $44.
US only produces only 10% of world oil production of 94 million barrels a day. And US imports 7.5 million barrels a day.
So US rig count is not a big feature in world oil production in any case
And just wait until the Iranians start dumping half a million barrels a day on the market.
The proposed drilling I've heard about around here involves horizontal wells rather than vertical ones. Big horizontal projects versus smaller vertical ones. Fewer rigs. I don't thing a fall in rig count necessarily implies lower future production.
The Saudis have made the US the world swing producer and while the rig count declines, bank redeterminations loom. Expect E&P companies to increase production into next year via completions of previously drilled wells to help bring their debt in line. They are all hoping the administration will authorize export of light sweet to give them some price support. Minus that crude will remain challenged well into next year.
Or, it could be that CL just bounced off a month-old trend line of support and channel midline going back to last December.
Charts at http://pebblewriter.com/better-late-than-never-2/
One of these days actual (i,e. real) demand may get involved in oil price discovery.
Is there an oil VIX ?
More Theater of the Absurd.
Bakken data: July 2015 production lower than December 2014. And only 1,000+ additional wells to do it! Long live zero cost oil!
https://www.dmr.nd.gov/oilgas/stats/historicalbakkenoilstats.pdf
If demand for your product has fallen, and there is a massive oversupply of it on the market, WHY WOULD YOU PRODUCE MORE?????
The fucking rape happening at the pump also has to stop. Has there ever been gasoline in a normal market above $2.25 with oil below $50 before? Oil was $70 last year at this time and gasoline was cheaper.
Yes, and why add 1,000 wells in the last seven months in the Bakken? Just because?
Are those producing wells or just open wellbores? Last I heard, there were plenty of uncompleted wells up there.
You cherry pick your data. Look to 1999 and gasoline has become cheap relative to crude oil.