Weekly oil and gas rig data:
- 5 rigs offline vs -11 last week
- Total rigs -5 to 415
- Natural gas rigs -1 to 86
Oil rigs had looked like they were flattening but the run-off last week and continued decline here show that production will still slow. Along those lines, weekly inventory data released Wednesday showed a 1.2% w/w decline in production, which is around 8.9m bpd. That market expects that to fall below 8m later this year and that sounds reasonable given the ceaseless decline in drilling.
The big question now is whether the recent bounce in prices will be enough to bring and drillers out of the woodworks.
