For the 14th week in a row, the US rig count fell 67 rigs to 1125, (a 5.6% drop to 41.4%, bigger than March 09's previous record 14-week decline of 41%). The decline in rigs continues to track the lagged oil price perfectly but has shown absolutely no impact on production levels as firms push for cashflows in a race to the bottom. As one analyst rightly noted, while rig counts continue to drop, companies are high-grading (shifting to more efficient wells), "the real thing that needs to change is U.S. production and that is not happening at the moment." April WTI Crude tested $45.01 before the data and bounced very modestly on the data.

• *U.S. TOTAL RIG COUNT -67 TO 1,125, BAKER HUGHES SAYS
• *U.S. OIL RIG COUNT -56 TO 866, BAKER HUGHES SAYS

The 14th weekly drop in a row continues to track the lagged oil price...

For an aggregate XX% plunge (the fastest plunge since 1986)

Rig counts drop but production rises...

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

Video length: 00:1:52

Charts: Bloomberg