Oil Price Responds to Declining Rig Count

The London exchange showed oil prices up over 2% on Monday morning, responding to a report that U.S. drilling rates had slowed and an estimated $1.5 trillion of planned production has been deemed uneconomic by the operators at the current oil price. The U.S. drilling rig count has declined for the past three weeks. Analysts for Goldman Sachs note that the decline in rig count suggests that U. S. oil production may be reduced as much as 250,000 bopd in the 4th quarter compared to production in the 2nd quarter.