We could be at a tipping point for oil production in the U.S. This week saw a drop to 9,038,000 bbls oil per day. U.S. production has not been below 9,000,000 bbls per day since Halloween 2014.
In the next two weeks, we could go below that key production level and that could have a big psychological impact on the crude market.
I usually don’t give much importance to the rig count – but this is getting to be too big a story to ignore. We are at the lowest rig count since WWII in the 1940’s. That is going to have severe consequences for U.S. oil production in the very near term.