As Texas slowly normalizes from Hurricane Harvey's impact, production has rebounded but the rig count continues to tumble (down 7 to 749 this week). This is the biggest weekly drop in oil rigs since Jan 2017 and June 2016. WTI Crude futures have once again tested $50 (and failed) this morning.
This is the 5th week in a row with no increases in oil rig counts.
The massive collapse in US crude production last week – with most of Texas offline – has recovered somewhat with a 572k surge in production this week. However, it is clear that levels of production are well off pre-Harvey levels…
WTI retested $50 this morning, and failed, but RBOB gasoline is on the rise…“The dollar is once again weakening and that is adding some support to oil too”
However, some remain bulish – “The market is realizing that demand is a lot stronger than there was given credit for,” says Phil Flynn, senior market analyst at Price Futures Group. “The untold story hidden behind the glut has been the demand growth”
via http://ift.tt/2x5BzXY Tyler Durden