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Reminder: the rig count drop is but a leading indicator of US oil production

or whatever this part is called
Reuters/Lucy Nicholson
The rig count’s meaning is in the eye of the beholder.
By Melvin Backman
Published Last updated This article is more than 2 years old.

The rig count fell again.

And prices are up.

But so is production.

And so are stockpiles of the black stuff.

In fact, the US Energy Information Administration hasn’t seen a slowdown in production for any of the major regions it tracks since oil prices started falling in June.

But that’s a monthly report, and with all the energy industry layoffs and spending cuts, maybe production will start to slow down. Business Insider thinks the production bump is all about oil companies playing chicken with their balance sheets, so maybe not. We’ll see. At least gas is still cheapish.

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