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.
