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US Oil Rig Count Tumbles 7th Straight Week, Lowest Since July 2010

Tyler Durden's picture




 

The US Oil rig count is now down over 63% from its highs in October 2014. Last week's 10 rig decline is the 7th straight weekly drop, pushing the count below 600 for the first time since July 2010. Crude prices are modestly higher on the news...

  • *U.S. TOTAL RIG COUNT FALLS 8 TO 787 , BAKER HUGHES SAYS
  • *U.S. OIL RIG COUNT FALLS 10 TO 595, BAKER HUGHES SAYS

Now down over 63% from highs... New Mexico, Oklahoma, and Texas saw the big declines this week.

 

Charts: Bloomberg

 

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Fri, 10/16/2015 - 13:12 | 6675660 FreeShitter
FreeShitter's picture

bullish...

Fri, 10/16/2015 - 14:22 | 6676016 walküre
walküre's picture

.. and then there's Iran

Fri, 10/16/2015 - 13:13 | 6675661 adr
adr's picture

Why are oil prices up on the news?

If there was a record stockpile of your commodity, would you be drilling for more?

If anything this is bad news for oil prices.

Fri, 10/16/2015 - 13:19 | 6675698 Kayman
Kayman's picture

Rig count is less and less of an indicator of new oil production.  You cannot compare todays multi-directional, VFD, linear controlled rigs against yesterdays neanderthals. 

If China was still buying scrap at $200/ ton fob N.A. many of these shut-down rigs would be scrapped out.

Fri, 10/16/2015 - 13:50 | 6675840 monk27
monk27's picture

Me just thinks yours is multi-directional BS... What's the half-life of those rigs again ?

Fri, 10/16/2015 - 14:08 | 6675940 FlacoGee
FlacoGee's picture

On the first frack or the second?

At full flow or dialed back?

Fri, 10/16/2015 - 13:28 | 6675742 NoWayJose
NoWayJose's picture

Nothing is rational in the oil markets. A lot of the 'numbers' come from the middle men and storage facilities. When oil prices rise, these guys use up their local stock first and hope the price drops down again. The reverse happens when prices fall. Yet somehow analysts get this backwards. So when prices go up and people slow their buying, crude inventories fall, which analysts interpret as increased demand - when in fact, it is the opposite!

Fri, 10/16/2015 - 13:37 | 6675778 Ms No
Ms No's picture

With the export ban removed one has to wonder how long it will be before the US is screwed with high oil prices regardless of what the market looks like.  Now they may get to hammer Russia and us at the same time.

Fri, 10/16/2015 - 14:39 | 6676099 sun tzu
sun tzu's picture

1. The export ban hasn't been removed

2. WTI can only move to parity with Brent

Fri, 10/16/2015 - 13:14 | 6675663 TheBoyPlunger
TheBoyPlunger's picture

Just remember to dump your crude before next week's 5+ million barrel build.

Fri, 10/16/2015 - 13:21 | 6675704 Dr. Engali
Dr. Engali's picture

Yay, higher oil prices!..., oh wait, higher oil prices :(.

Fri, 10/16/2015 - 13:32 | 6675762 Ms No
Ms No's picture

Is ND still only claiming 40 laid off?

Fri, 10/16/2015 - 14:33 | 6676068 Captchured
Captchured's picture

I believe the all-time high in ND is 214 rigs working (most all of them bakken/three forks). There are currently 67 working. Straight from the source...

 

https://www.dmr.nd.gov/oilgas/riglist.asp

 

Fri, 10/16/2015 - 13:49 | 6675838 Herdee
Herdee's picture

The rig count has nothing to do with production numbers.The world is awash with oil and Iran is  coming on.Just take a look at Suncor's production out of Fort McMuuray and Imperial Oil's Kearl Lake Project coming onstream and doubling production.There's no economic demand on top of it.It's nothing more than a bunch of gangsters at The Fed and at The Treasury Trading desks along with all Central Banks across the globe manipulating markets as long as they can in order to stall.They have to help out their bum buddies.All markets are being manipulated right now,you don't have free markets in Central Planning.It didn't work for The Soviet Union and it won't work for the F'n crooks today.

Fri, 10/16/2015 - 14:27 | 6676034 walküre
walküre's picture

Herdee you're late to the party of the enlighted. Send your truck nuts to the Liberals. Trudeau jr. could use a pair and by the looks of it.. he's gonna need 'em.

Fri, 10/16/2015 - 14:08 | 6675948 Hohum
Hohum's picture

Bakken production in August lower than Dec 2014 although 1,165 additional wells producing (who needs rigs?).

Fri, 10/16/2015 - 18:45 | 6677254 Apply Force
Apply Force's picture

Collapse seems too hard for most to swallow.  All things levered to a high degree will falter, and with energy and ores at the heart of all production, the general commodities collapse is just getting started.  We can only Red Queen our way through this with financial buggery for so long - currency does not create energy.

Best prepare for what you will & good luck to all!

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