by Bill McBride on 1/07/2018 11:32:00 AM
A few comments from Steven Kopits of Princeton Energy Advisors LLC on Jan 5, 2017:
• Total US oil rigs were down 5 to 742 this week
• Horizontal oil rigs declined again, -2 to 650
• The reticence of operators to add rigs in the face of surging oil prices is remarkable. It suggests we are seeing a second inflection point with even greater restraint from operators. (The first inflection point for this cycle occurred in July.)br />
• Oil price bears will find no comfort in this report. Expect oil prices to continue to rise until we see life in the horizontal rig count.
• Incredible price action again this week, with WTI breaching the $62 threshold, and the Brent spread holding around $6.50.
Click on graph for larger image.
CR note: This graph shows the US horizontal rig count by basin.
Graph and comments Courtesy of Steven Kopits of Princeton Energy Advisors LLC.