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How a Rising Rig Count Could Affect Oil Long Positions

Robert Scott
How a Rising Rig Count Could Affect Oil Long Positions

In the week ended May 11, the oil rig count rose by ten to 844—the highest level in more than three years. US crude oil price and oil rig count movement usually follows a pattern. Oil prices tend to lead rig count changes by three to six months. The graph below illustrates the pattern.