The news didn’t make much of a ripple when it came out, probably because crude prices were down anyway, though not by much.
But for what it was worth, the latest weekly survey on the US oil rig count released by industry firm Baker Hughes on Friday showed a drop of just one unit. This is quite a remarkable shift from the double-digit drops registered every week just two months ago.
But, one swallow doesn’t make a summer. Likewise, a drop of just one oil rig last week doesn’t mean US crude production is going to come galloping back the following week.
Yet, what we really need to think about is how quickly can drilling earnestly pick up in America’s oil patches, if prices keep rising, week after week, with little fundamental justification?
Daily WTI crude futures
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