Crude Bounces After Oil Rig Count Decline Slows

Oil prices have tumbled this morning ahead of the Baker Hughes rig count data but algos bounced them after the pace of oil rig count decline slowed further. For an unprecedented 21st week in a row, the US total rig count declined this week (down 27 to 905).  Oil rigs fell 24 to 679 for the fastest total collapse in rig counts in history (down over 57% in 21 weeks). This is a faster pace of decline than the previous week for total rigs but a slower pace of decline for oil rigs.

  • *U.S. OIL RIG COUNT DOWN 24 TO 679, BAKER HUGHES SAYS
  • *U.S. TOTAL RIG COUNTDOWN 27 TO 905 , BAKER HUGHES SAYS

If lagged oil prices are any historical guide then the decline is due to stall very soon...

 

Oil Rig count decline is slowing...

 

Have we started to see the rig count collapse finally weigh on production...?

 

But oil prices have roundtripped today from yesterday's end of month exuberance... and bounced higher on the rig count news...

 

Charts: Bloomberg