Oil Slides After Rig Count Spikes Most Since April 2013

Tyler Durden's picture

While a desperate Saudi Arabia jawbones how well OPEC production cuts are going, the road ahead looks like a surge in US Shale supply is coming. Following a brief dip in the previous week, US oil rig counts soared 29 to 551 last week - the biggest weekly rise sicne April 2013 - to the highest since Nov 2015.

*U.S. OIL RIG COUNT UP 29 TO 551 , BAKER HUGHES SAYS :BHI US

 

Which signals to OPEC that more production is coming...

 

And WTI prcied are leaking lower...

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xythras's picture

Forget about Oil. POPCORN is the king this year

CNN Claims its Credibility is Higher Than Ever and Piles on to Clinton Losing Election During Inauguration Broadcast

http://dailywesterner.com/news/2017-01-20/cnn-claims-its-credibility-is-...

 

GGuy's picture

Day One: J00 Media (CNN)blames Trump for"Session  Stock Market Slump"

silverer's picture

CNN. What a waste of TV space. I'd rather watch a Somalian cooking show.

WTFUD's picture

You're not wrong, there's a green banana Somali dish to die for.

Hohum's picture

Surge in production AND a surge in negative free cash flow!

Stan Smith's picture

We're literally storing oil on ships still sitting in the water because we dont have a place to put it on land.    How in the hell is oil at the price it is now to begin with?  

It strikes me that a correction is due, the question is how much.

7point3's picture

And when?  How long does it take for crude build, gasoline build, and rig build realities to sink in and be reflective in a price drop.  The price just seems to ignore all of this.

A. Boaty's picture

Approximately 1 billion barrels in storage. That has to draw down irrespective of what OPEC does.

GoinFawr's picture

Yeah, just to give your 'wun-bill-yen' some actual context: that's like, what? ten whole days of global consumption? Or ~40 days of US consumption alone (w/SPR actually maxing out at ~700million barrels, admittedly considerably less than your 'wun-bill-yun')! Why, the stuff should be free for the next month and a half, no? Hell, the producers ought to pay US to use it (like Canada does:WCS), amirite?

OTOH, as a percentage of annual consumption which is 'building' faster, the yoy increase in worldwide use, or storage volumes?

JB Say's picture

USO up almost 2% today

yngso's picture

No no no, US oil is desperate because of loads of debt and high production costs. Right now they're only trying to make quick buck before the price plunges again.