Oil rigs unchanged at 512Gas rigs down 1 to 114Oil rigs down 16% from the peak
If I’m OPEC+ and looking at this, I feel totally in control. There’s no surge of US production coming to counter OPEC cuts.
Some notes from John Kemp:
Based
on the historical record, after prices peak it takes on average 5
months for drilling to turn down and 12 months for production to
decline.Following the drilling peak, Lower 48 output is likely to peak in the third quarter of 2023Flat or falling Lower 48 production will contribute to a tightening global oil market during the final four months of 2023
It’s no wonder WTI crude is above $85 today. It could blow out higher next week if OPEC gets aggressive.
This article was written by Adam Button at www.forexlive.com.