12 Jan 2015
US oil rig count continues to fall – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team note that both Oil prices and US Oil rig count continue to fall, with oil experts warning that the rig count could fall to 1000 before the end of the cycle.
Key Quotes
“Although oil prices have been falling for six months, the world is still in the early days of the adjustment process.”
“Competition for market share is intensifying. OPEC producers, led by Saudi Arabia, are still increasing discounts to the official selling prices for the US and Europe.”
“At the same time, the US government has informally eased rules to export lightly processed crude (condensate). Canada’s exports to the US appear to be displacing some of Latam and African producers.”
“The US rig count continues to fall, but much more is likely to be seen if oil prices stay low and/or fall further. There are still about 1482 oil rigs operating in the US (excluding rigs off-shore).”
“Based on past experience, some oil experts, like T. Boone Pickens, warn that the rig count could fall to 1000 before the end of the cycle. In addition, because of the advent of horizontal drilling, the relationship between rig count and actually output might not be as tight as it has been in the past.”
Key Quotes
“Although oil prices have been falling for six months, the world is still in the early days of the adjustment process.”
“Competition for market share is intensifying. OPEC producers, led by Saudi Arabia, are still increasing discounts to the official selling prices for the US and Europe.”
“At the same time, the US government has informally eased rules to export lightly processed crude (condensate). Canada’s exports to the US appear to be displacing some of Latam and African producers.”
“The US rig count continues to fall, but much more is likely to be seen if oil prices stay low and/or fall further. There are still about 1482 oil rigs operating in the US (excluding rigs off-shore).”
“Based on past experience, some oil experts, like T. Boone Pickens, warn that the rig count could fall to 1000 before the end of the cycle. In addition, because of the advent of horizontal drilling, the relationship between rig count and actually output might not be as tight as it has been in the past.”