Erik Norland, CME Group suggests that US oil production is about to peak…
“The number of operating oil rigs plateaued at just over 750 in July, according to data from oil services provider Baker Hughes. This by itself may point to a decline in U.S. oil production. However, it takes, on average, about four months or so for an oil rig to begin producing significant amounts of oil – although time lags can be vary considerably depending upon the equipment and the field. And, there are about 100 more rigs operating today than there were four months ago. This suggests the possibility of some further upside for oil production over the next few months. ”
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