Categories: Market Overview

The US winding down crude oil drilling, despite prices rebound

The number of drilling rigs in the US continued to decline last week, reaching a new low of 258 units (oil + gas). The number of oil rigs dropped to 181 compared to a historic low of 179 in 2009. Although for almost three months, oil quotes have maintained a growth trend, US companies do not increase drilling activity.

Perhaps this is an essential factor in supporting oil prices. Their reversal to growth in the second quarter based on a sharp decline in the production of OPEC + countries, and an output reduction in countries that did not formally join the agreement. Now OPEC+ is considering some ease for quotas since August, and Mexico is refusing initial agreements. If resumption of production, or at least the restoration of drilling activity, is added to this, the growth trend in oil quotes may be finally broken.

The FxPro Analyst Team

The FxPro Analyst Team

Our team consists of financial market experts. Our dedicated professionals prepare reviews on the foreign exchange market situation, Crude Oil, Gold and Stock Indices. All the analysts are regularly published in the world leading economic media.

Share
Published by
The FxPro Analyst Team
Tags: brentUSwti

Recent Posts

Nasdaq 100 Wave Analysis 23 December 2024

- Nasdaq 100 reversed from strong support level 21000.00 - Likely to rise to resistance…

2 days ago

USDJPY Wave Analysis 23 December 2024

- USDJPY reversed from key support level 156.35 - Likely to rise to resistance level…

2 days ago

US indices: has the bullish trend broken?

The recent declines in US indices may have broken the bullish trend, indicated by technical…

2 days ago

Dollar: Slowing Momentum, Same Direction

The dollar has paused its strengthening, as weaker-than-expected inflation data reduces fear of future Fed…

2 days ago

Bitcoin Fell Back to Local Support

Bitcoin finds support near the 50-day moving average, but further declines in the stock market…

2 days ago

EURCHF Wave Analysis 20 December 2024

- EURCHF falling inside minor impulse wave 5 - Likely to fall to support level…

5 days ago

This website uses cookies