Oil and gas drilling data from Baker Hughes:
- Prior was 510
- Gas rigs 121
- Prior gas rigs 127
- Overall rigs 619 vs 637 prior
Oil rigs have been running off for more than a year but production has hardly slowed. With massive builds continuing in the US and storage overflowing, it will take awhile to run-down the excess and get the market into balance; but crude hitting $26 this month will speed things up.
For now, this is bullish for crude but it's been a choppy day with pries rising to $34.40 and then slumping to a session low of $32.65 as Iran said it wasn't joining in any production cuts.
