Oil prices have dropped for a couple of days because the Saudis said they would keep pumping oil to keep up with demand.  Basically, if somebody wants to buy their oil, they’re going to sell it.  I’m personally surprised that anybody is surprised at this.  I’ll be surprised when the Saudis start to cut back on production.  Why the market thinks that the Saudis want high oil prices right now is beyond me.  They haven’t yet accomplished any of their (suspected) goals, except for keeping market share.  U. S. shale drillers are not yet going out of business in large numbers, and Venezuela, Russia, and Iran have not been hurt enough to make any serious changes.  Until those goals are accomplished, Saudi Arabia is going to keep pumping oil so that they keep their current customers.

On the other hand, experts are predicting that rig counts will bottom out in May.  I think this is too soon to start bringing rigs back, as supply needs to drop and prices need to climb before more rigs become economically sound.   Supply isn’t going to drop enough to justify bringing rigs back online because producers will be able to bring previously drilled non-producing wells online.