Rig Count a Predictor for US Q2 Production

The falling number of rigs drilling for oil in the United States is pointing to a decline in U.S. oil production in the second quarter, Goldman Sachs analysts said on Monday.

Rig count in the United States fell by 56 last week to 866, the fewest since March 2011, according to oil services firm Baker Hughes.

"The current rig count is pointing to U.S. production declining slightly sequentially in the second quarter of 2015," analysts at Goldman Sachs said in a report.

Oil prices fell on Monday, with U.S. crude dropping nearly 3 percent to a six-year low of $43.57 a barrel as the dollar hit fresh highs and spare oil storage capacity runs low around the world.

 

Reporting By Jacob Gronholt-Pedersen