Saturday, January 31, 2015

Biggest drop in oil rig count since 1987


Petroleum producers took 94 oil-drilling rigs off the market in the United States this week as sub-$50 oil continued to wreak havoc on the oil industry, Baker Hughes reported Friday.

It was the biggest one-week decline for oil rigs since 1987, the earliest year of Baker Hughes data available. That year, the oil industry had faced another oil bust that left hundreds of rigs idle or repossessed by banks, which sold them for scrap.

This week’s drop left 1,223 oil units up, the lowest number in three years.

Yes markets work. Keep your powder dry as this will eventually lead to the mother of all buying opportunities in oil stocks.

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