Oil crumbles on fears of surging US production

Technical Analysis

Author: Adam Button | oil

Drillers jump

For the second week in a row, the number of US oil rigs surged. It's a sign that shale production could be about to explode again.

Also this week, US oil production jumped more than 300K bpd to 10.2 million barrels per day. That's more than Saudi Arabia and the most since the 1970s.

The combination of those reports, along with the extreme souring of sentiment in all markets is crushing oil. It's down more than 11% this week including a 4.4% drop today.