Weekly drilling rig data from Baker Hughes
- First decline since June 24 week
- Prior was 443
- Natural gas rigs 114
- Prior natural gas was 108
- Total rigs 557
- Prior total rigs were 553
The number of oil rigs bottomed out at 316 in late May but despite the jump, production still hasn't picked up. It will, it's just a matter of the time lag.
I wouldn't read too much into one week of declines because rigs jumped 11 last week so it puts it back on trend.
What is a bit positive for oil is that there isn't an upward acceleration of rigs in response to higher prices but that might just be a matter of time if crude stays around $50.
