Oil prices are starting the new week of trading largely unchanged. Brent is priced at $57 per barrel and WTI at just shy of $51 per barrel. There is a sharp fall in oil price in recent weeks – the WTI price has shed approx. 15% since the end of June – has clearly reduced the willingness to drill for oil in the US, notes Commarzbank. According to data from Baker Hughes, the oil rig count decreased by 7 to 638 last week, numbers falling in shale plays such as Eagle Ford and Bakken. By contrast, a slight increase was reported in the Permian Basin. In other words, expectations that the increase in the oil rig count over the past two weeks signals a trend reversal in drilling activity have proved to be premature, says Commerzbank.
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