For the 11th week in a row, the number of US oil rigs rose ( up 10 to 662 – the highest since September 2015 ). US Crude production continues to track the lagged rig count, pouring more cold water on OPEC’s production cut party. The rig count grows, tracking the lagged oil price in a self-defeating cycle… And crude production appears to have plenty more room to run… And don’t forget, as Nick Cunningham detailed, there are thousands of drilled shale wells are sitting idle, unfracked and uncompleted. (Click to enlarge) Once the DUCs are completed, new production will come online. And just as before, that backlog still weighs on the market. Wood Mackenzie estimates that if the Permian Basin’s DUC list was completed, it would add 300,000 bpd in new supply. That supply sitting on the sidelines will put downward pressure on any new oil price rally. […]