We warned just a week ago that the lag between initial price declines in oil and the closure of rigs was between 4 and 6 months [2] and just as we warned of the deja-vu all over again, Banker Hughes reports that the Rig Count this week dropped the most since March 2013 (oil rigs dropped 29 to 1546 - biggest weekly drop in 2 years). The biggest drop was seen in the Permian Basin (down 20 to 548). Of course, it's being ignored for now, just as it was in 2008...
Worst weekly drop in rig count since March 2013...
[3]
With Oil Rigs down 3rd most in 5 years...
[4]
And as a reminder, what happened last time...
[5]
Unequivocally good...
Charts: Bloomberg
