Following last week's slowing in the pace of rig count [3], crude prices dropped and then spiked, and it makes today's data under more scrutiny. At around $49.50, WTI prices have round-tripped back almost perfectly to the scene of the crime before today's rig count data hit. The total oil rig count dropped almost 6%, down 75 to 1,192 meaning a re-acceleration of the rig count decline and the 2nd biggest drop since 1993.
- *U.S. TOTAL RIG COUNT -75 To 1,192 , BAKER HUGHES SAYS
- *U.S. OIL RIG COUNT -64 TO 922, BAKER HUGHES SAYS
2nd biggest rig count decline since 1993
[4]
Total rig count has now dropped 38% in the last 13 weeks - just shy of the move in 2009...
[5]
Before today's data, oil had tumbled all the way back to unchanged from last week's rig count data...
[6]
The reaction was a rally higher and drop back..
[7]
But production continues to hit record highs...
[8]
* * *
Finally, here is Bloomberg to explain the 'link' between wells, production, and rigs...
Charts: Bloomberg
