Decline in oil rig counts sent crude prices higher for a second consecutive week. However, we are cautious over the optimism and believe the rally is unsustainable. Baker Hughes reported that oil rig counts fell for a 9th week to 1 140 units in the week ended February 6. The decline in the Permian Basin was huge with the number of active rigs falling by -37 to 417 over the past week.
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Weekly Fundamentals – Crude’s Rally on Rig Count Fall Unsustainable
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