US Oil Rigs Decline Most In Six Weeks

Tyler Durden's picture

After 3 straight weeks of rig count increases, US oil rigs declined 7 to 330 this week - the biggest drop in 6 weeks - sparking a very modest rise in WTI Crude.

Biggest decline in oil rigs in six weeks...

 

And oil jumped a smidge...

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Hohum's picture

That's good.  That means the drillers can rely on "efficiency."  Although the Bakken 94 barrels per day per well (lowest in years) suggests maybe not:

 

https://www.dmr.nd.gov/oilgas/stats/statisticsvw.asp

Boris Badenov's picture

Is this Bullish or Bearish? I forget...

Elco the Constitutionalist's picture
Elco the Constitutionalist (not verified) Jun 24, 2016 12:48 PM

Headline fail. "most in 6 weeks" - how is that meaningful at all? I just took a piss with the most volume in 6 hours.

adr's picture

What is it with this near $48 bullshit. Oil didn't even fall below the Cox level.

Is there still a record surplus, yep.

Are inventory levels still higher than ever, yep.

Has demand increased other than Chinese stockpiling that is pretty much over, nope.

 

WHY IS OIL STILL $48????

Hohum's picture

Why?  Because the marginal barrel costs at least that much?

CarpeTutti Bastardi's picture

Because it is not yet time nor good reason to jack it higher!

It takes time and moderate steps to get it to the price that they want it to be;

no matter how many or how few rigs are employed or how many tanker loads

are waiting to off load.

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) adr Jun 24, 2016 2:59 PM

Because the contract months keep getting rolled forward so prices decline over the month for next months contract but next months contract has a slightly higher price than this month so when we get to that month it looks like oil went up.  Better to just follow the USO ETF 

venturen's picture

and yet the storage tanks keep filling up.....demand keeps falling. Natural Gas....just had it smallest demand requirement for the next season pretty much EVER