US Oil Rig Count Tumbles To July 2011 Lows, Pace Slows

For the 11th week in a row (2008/9 saw 20 weeks in a row), US rig counts fell and production hit record highs. Rig counts are tracking the lagged price of oil's decline almost perfectly, with total rigs having dropped 32% from the highs. Notably last week's rig count drop was the smallest in 4 weeks (down just 48 to 1310) with oil rigs dropping 37 to 1,019. Oil prices dropped on this news on worries at the slowing pace of rig count closure.

 

Rig counts itracking 4mo lagged price perfectly but pace of rig count decline slowed this week - total rig count now down 32% ion last 11 weeks...

 

Price is dropping on the slowinghpace of rig count declines...

 

Rig count collapses as firms focus on efficieny and cash flow - raising production to record highs...

 

 

Charts: Bloomberg