Spike in the active rig count - all in Texas

[dan_s]

https://rigcount.bakerhughes.com/na-rig-count

[dave_n]

No!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

That would explain the precipitous drop today.

[dan_s]

Just remember that the week-to-week changes in the active rig count is not a trend and during the holidays you can get some funky numbers.

IMO today's dip in the oil prices, which started before the active rig count report was released, probably was more just profit taking before traders take off all of next week. Today was also a "triple witching" Friday with the February WTI futures contract becoming the front month. Some traders may have rolled over their short positions from January and the longs took profits and may sit on the sidelines until after New Years Day. Low volume trading days around the holidays are always weird.

I think WTI will flop around $60 until the Phase One Trade Deal is signed with China.