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February 20, 2015

U.S. Oil Rig Count Lowest Since July 2011

By Tyler Durden at ZeroHedge 
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 tracking 4mo lagged price perfectly but pace of rig count decline slowed this week - total rig count now down 32% in last 11 weeks...
Price is dropping on the slowing pace of rig count declines...
Rig count collapses as firms focus on efficiency and cash flow - raising production to record highs...
Charts: Bloomberg
Courtesy Tyler Durden, founder of ZeorHedge (EconMatters author archive here

The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

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