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Rig Count Decline Re-Accelerates To 2nd Biggest Drop In 22 Years

Following last week's slowing in the pace of rig count, crude prices dropped and then spiked, and it makes today's data under more scrutiny. At around $49.50, WTI prices have round-tripped back almost perfectly to the scene of the crime before today's rig count data hit. The total oil rig count dropped almost 6%, down 75 to 1,192 meaning a re-acceleration of the rig count decline and the 2nd biggest drop since 1993.

  • *U.S. TOTAL RIG COUNT -75 To 1,192 , BAKER HUGHES SAYS
  • *U.S. OIL RIG COUNT -64 TO 922, BAKER HUGHES SAYS

2nd biggest rig count decline since 1993

 

Total rig count has now dropped 38% in the last 13 weeks - just shy of the move in 2009...

 

 

Before today's data, oil had tumbled all the way back to unchanged from last week's rig count data...

 

The reaction was a rally higher and drop back..

 

But production continues to hit record highs...

 

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Finally, here is Bloomberg to explain the 'link' between wells, production, and rigs...

 

 

Charts: Bloomberg