Active oil rigs count in US likely nearing its June low again

After rising on Friday, oil prices are largely shedding their gains again today. Prices are continuing to fluctuate as they did last week. Brent has dropped to $48 per barrel and WTI to $45 per barrel. Once again, weak economic data from China are generating headwind. 

Because markets in China will be closed for a week-long holiday from 1 October, during which time hardly any economic data will be published from China either, there will be no further disruptive factors from this side, at least temporarily, which could give oil prices a boost. 

This would particularly apply if there were to be increasing signs that US oil production is declining, and indeed there are further indications that this is the case. 

"According to Baker Hughes, the oil rig count in the US decreased by another four last week. This was the fourth consecutive reduction. At 640, the oil rig count is now only marginally above its end-of-June low, i.e. the lion's share of the increase seen between early July and late August has now been reversed again", states Commerzbank.