US Oil Rig Count Drops Most Since November, But...

The US oil rig count has not risen for four weeks and dropped 5 rigs in the last week - the biggest weekly drop since early November - while production is at record highs.

However, as the chart below shows, the rig count is merely mirroring  - as it has for years - the lagged performance of the WTI price...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180105_rig.jpg

Which suggests the rig count is about to rise once again and with it - more crude production.