Goldman Sachs on oil - Rig count drop not yet large enough to reduce production

Comments from Goldman Sachs on oil and rig counts overnight.

• The drop in US rig counts is not yet large enough to reduce production
• Especially given that efficiency gains have surprised to the upside
• Well backlogs are building that could quickly add over 250kb/d of production when deployed
• Also not that declines in oil production from the US and non-OPEC sources have been offset by higher production in Saudi Arabia, Iraq and Russia
• GS say they do not expect OECD inventories to decline until 2016

These comments are not a new view from GS, they have been speaking along these lines for a while .... so just noting these again.