Originally Posted by
digger
Drilling retreat predicted on falling prices
Price pessimism: Investment firm worried about curbs on activity
Crude below $98 on weak data
Brent holds steady ahead of Opec meeting
18 June 2012 21:55 GMT
.Analysts at Raymond James downgraded a number of drillers, including Ensco and National Oilwell Varco, and cut its US rig count estimate for 2013 for the second time in as many months, saying companies are likely to reduce activity to sustain oil price levels.
"Our increased negativity is solely predicated on the belief that significantly rising US oil production in the face of weaker global oil demand growth is on track to drive oil prices lower in 2013," Reuters reported Raymond James analysts as saying in a note.
US oil futures for July closed at $83.27 per barrel on Monday, a drop from its spike of more than $108 in March.
US land rig count will fall by a quarter in 2013 from current peak levels, the analysts wrote, adding that they have an "increasingly bearish view on oil prices".