Oil Pops & Drops As Rig Count Decline Reaccelerates But Production Hits Record

Even though production has hit new record highs (and Saudis threatening to increase further), the machines remain transfixed by rig counts and inventories. The total rig count dropped 9 to 859 - declining at a faster rate than the prior week. Oil prices initially popped on the rig count drop but then everyone remembered this is just a sign of how bad the malivestment is given the surging production.

• *U.S. OIL RIG COUNT FALLS 7 TO 635, BAKER HUGHES SAYS
• *U.S. TOTAL RIG COUNT FALLS 9 TO 859 , BAKER HUGHES SAYS

Another week of declines...

 

But production just keeps rising...

 

And the result...