DRILL BITS

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

The rig count fell again.

US-crude-oil-rig-count-Rigs_chartbuilder

And prices are up.

Futures-price-for-a-barrel-of-crude-oil-West-Texas-Intermediate-Brent_chartbuilder (10)

But so is production.

US-crude-oil-production-per-day-Total_chartbuilder

And so are stockpiles of the black stuff.

US-commercial-crude-oil-stocks-Actual-Four-week-average_chartbuilder

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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