EIA confirmation of OPEC cut-compliance is trumping the dismal inventory data and surging US production for now. However, as US oil rig counts continue to rise ( 8 to 591 – highest since Oct 2015) with US crude production charging ahead with it, the question many should be asking (given all-time record high net long speculative positioning in WTI/Brent) is “what will OPEC do if the market doesn’t rebalance?”
The rise in rig counts has been all Permian and all horizontal. Oil rig counts rose 8 this week to 591 – the highst since Oct 2015
This post was published at Zero Hedge on Feb 10, 2017.