Oil rig count is stabilizing
As the WSJ noted, U.S. oil rig count is stabilizing after it collapsed along with oil prices during the global lockdown. While the number of oil rigs is still falling to new lows, it is falling at a slower and slower pace.
When the Baker Hughes oil rig count fell by less than 1% over the past week for the first time in more than 5 weeks, oil's future returns were mixed/bearish. The past few historical cases saw oil fall further over the next 2 weeks.
Here's the risk:reward table: