Twenty-one more rigs. Darn. Halliburton (HAL) has too much business to handle. Drat. Permian drilling costs keep plunging. Ugh. Keystone's being built. Good grief.
And we wonder why oil can't stabilize.
Oil can't find its footing because we keep pumping more and more oil, 100,000 more barrels each month. That Baker Hughes rig count is simply on a nonstop trajectory because our oil companies can make a huge amount of money at these prices.
Unless the Saudis single-handedly decided to make a gigantic cutback, then every step forward in oil will be met with a step backward.
When oil hit my first downside target of $47, I thought it could probably hold. But when I see this big rig count move, I think it could still go to $45, my second level, where I think many oil companies that aren't stretched might shut down the spigot.
Either way, it is so hard for oil to catch a bid because there is too much of it. Supply and demand are in charge because in the end, of course, it is a commodity market.