National Energy Services Inc. (fka NESV)

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Does JD provide fracking services in North Dakota?

Last week, the U.S. oil-rig count also slid further, falling by 26 to 413, according to a report by industry group Baker Hughes. There are now about 68% fewer rigs of all kinds from a peak of 1,609 in October 2014.

The number of U.S. oil-drilling rigs, viewed as a proxy for activity in the oil industry, has fallen sharply since oil prices began to fall.

According to an analysis by Cantor Fitzgerald & Co. of 53 producers, U.S. crude-oil production is expected to fall 1.1% this year and expand 1.7% in 2017, down from expectations at the end of last year for growth of 4.6% in 2016 and a 3.1% expansion next year.

“The slow decline rate shows that it takes time for the U.S. shale producers to adjust to the low prices but it also shows that at this price level, it is not economical for many of them to keep going,” said Barnabas Gan, an energy analyst at OCBC.

Despite signs of falling production, the market remains heavily oversupplied. Some analysts say while the market has little expectation of any concrete actions by major oil producers to support prices, talks between Russia and Saudi Arabia to possibly freeze production at the January levels are providing a glimmer of hope.

This week, traders will take cues from China’s February manufacturing data, due Tuesday, and the weekly U.S. crude inventories and production data on Wednesday.