After weeks of modest declines, the US Oil Rig Count plunged by 31 to 467 this week - the biggest drop since April 2015 led by a 19 drop in Texas. Total rig count crashed 48 to 571. The reaction, though muted, was a jump in crude prices.

• *BAKER HUGHES OIL RIG COUNT FALLS 31 THIS WK TO 467
• *U.S. TOTAL RIG COUNT DOWN 48 TO 571

A big plunge - tracking lagged crude perfectly...

Led by Texas in absolute terms - but every region is accelerating in the last 6 months...

For now, as Bloomberg reports, production has not budged. 

After a year of low oil prices, only 0.1 percent of global production has been curtailed because it’s unprofitable, according to a report from consultants Wood Mackenzie Ltd. that highlights the industry’s resilience.

The analysis, published ahead of an annual oil-industry gathering in London next week, suggests that oil prices will need to drop even more -- or stay low for a lot longer -- to meaningfully reduce global production.

“Since the drop in oil prices last year there have been relatively few production shut-ins,” according to the report. The company, which tracks production and costs at more than 2,000 oilfields worldwide, estimates that another 3.4 million barrels a day of production are losing money at current prices, of about $35 a barrel. It cautioned against expecting further closures, because “many producers will continue to take the loss in the hope of a rebound in prices.”

The reaction...