US Crude Production At Cycle Highs As Rig Count Stabilizes; Desperate Saudis Jawbone Deeper Cuts To Come

By Tyler Durden

A tough week for crude oil, which tumbled after algos tagged $50 stops yesterday following the biggest gasoline inventory build in 7 months. While the US oil rig count has stopped rising in the last few weeks, production continues to hit cycle highs stalling prices, but the Saudis are not giving up on their incessant jawboning – hinting that “deeper cuts” are still on the table.

US oil rig counts rose by 3 to 768 last week – it has fallen 3 times in the last 7 weeks and is practically unchanged in the last 2 months…

Just as we predicted, the lagged response to the shifting oil price has been a stalling of the rising rig count…

But even with the US oil rig count declining for 3 of the last 7 weeks, crude production in the Lower 48 rose once again to 9.048mm b/d – the highest since July 2015…

WTI prices had a disappointing week – not helped by the biggest gasoline inventory build since January…

Once WTI algos tagged $50, it was a one-way street lower

“We are stuck in a range and having found some support at $48/bbl, it’s moving higher” says Ole Hansen, head of commodity …read more

Source:: ZeroHedge