Texas Oil Rig Count Now at Its Lowest Level in More Than 5 Years

West Texas Intermediate crude oil prices have stabilized around $45 per barrel over the past six weeks after experiencing higher volatility in August and early September). However, the fall from $60 in June prompted a continued decline in the Texas rig count, which is now at its lowest level since mid-2009, reports the Dallas Fed.

With oil price stability, or a further climb in the oil price, we are likely to see strong acceleration in government price inflation indexes. The indexes were weighed down significantly by the declining oil prices, but as the rig count drops, supply will drop, steadying the price.

-RW