Oil prices pared down losses on Thursday New-York session as drilling capacities in US resumed declines this week. Oil rig count dropped by 15 to 372, reports Baker Hughes, after it added 1 rig on the previous week. Now the number of rigs is the lowest for 6 years, losing more than 65% from the peak of October 2014.In contrast gas Oil rigs increased by 3 to 92 this week, total number of energy rigs fell 12 to 464.
The data released is quite controversial with current increase of US crude inventories by whopping 9.31M barrels this week reports EIA, versus 3.1M anticipated. Reducing Oil rig count implies that production of Oil in US should drop, while Production of Oil in US leveled off in August 2015 when efficiency per rig peaked then turned to decline as more and more Oil rigs have been idled.
With Oil rig count dropped by 70%, production decreased only by 5%
WTI, propped up by Baker Hughes data, pared down 1.5 percent loss from 2 percent steep decline closing at $39.59, Brent managed to get out of red figures, closing with 0.02% gains at 40.44.
After publication of downbeat EIA data and wave of bullish support rendered to US Dollar Oil prices dropped more than 2%, WTI touched 38.50, while Brent was as low as 39.30.
Today is Good Friday Holiday so European and US markets are closed.