• The Baker Hughes oil rig count increased by 15 from 40 to 55 whilst the US oil rig count dipped.
• It bucks a recent trend of a stark contrast between US and Canadian drilling, with US rigs rising on higher oil prices along with little response in Canada – part of the reason for oil’s fading impact on CAD.
• It follows Dep Gov Gravelle a few weeks ago: “we expect the recent increase in commodity prices to boost the level of business investment in Canada by less than half of what our models generally predict based on historical relationships”.

Baker Hughes Oil Rig Count in Canada (yellow), US (white) and WTI 1st fut (green)Source: Bloomberg