After posting the smallest possible rebound in the past week, moments ago Baker Hughes reported that in the holiday shortened week (in which there was some extrapolation) the decline in US oil rigs has resumed, and as of this moment there were only 372 oil rigs operating in the US, down 15 weekly and the biggest drop in the past moth, to the lowest number in recent history.
Offsetting the drop in oil rigs was a modest increase in nat gas rigs which rose by 3 in the past week; the result was that the drop in total US rigs was -12 to 464, a new record low in this 41 year-old series.
Considering the relentless collapse in rigs and its historical delayed correlation with US oil production, the latter better slide soon or else some may ask if there is something more to this data set than meets the eye.
Some further breakdown:
- OIL RIGS IN CANA WOODFORD FALL BY 3 TO 31, BAKER HUGHES SAYS
- OIL RIGS IN PERMIAN FALL BY 5 TO 145, BAKER HUGHES SAYS
WTI has staged a modest rebound on this latest negative (for US GDP as it means even less dollars are spent on capex) news, pushing it to intraday highs, about $1 higher from this morning's lows.