US Rigs Down 39% In April, Output Down 1mn B/D

*The US oil rig count fell by 39% (246) in April, ending the month at 378, according to Baker Hughes data. This is the lowest figure since July 2016, whilst April’s fall was the second highest on record after January 2015 (see chart). The record low oil rig count of 316 set in May 2016 is likely to be breached over the coming weeks – some analysts are predicting that the figure could fall as low as 200.

*Over the last six weeks the oil rig count is down by a cumulative (45%), with US crude output down by 1mn b/d from 13.1mn b/d to 12.1mn b/d, according to provisional EIA output data. This is already half of the fall in output to around 11mn b/d that the EIA predicts will take place over the course of 2020 (MEES, 10 April). (CONTINUED - 337 WORDS)