Even though production has hit new record highs (and Saudis threatening to increase further), the machines remain transfixed by rig counts and inventories. The total rig count dropped 9 to 859 - declining at a faster rate than the prior week. Oil prices initially popped on the rig count drop but then everyone remembered this is just a sign of how bad the malivestment is given the surging production.
- *U.S. OIL RIG COUNT FALLS 7 TO 635, BAKER HUGHES SAYS
- *U.S. TOTAL RIG COUNT FALLS 9 TO 859 , BAKER HUGHES SAYS
Another week of declines...
[2]
But production just keeps rising...
[3]
And the result...
[4]
