As oil nears $50 a barrel, will renewed drilling undercut price gains?

The oil market is turning its attention back to the U.S. as more of its rigs return to work following a surge to $50 a barrel, raising concern that a production rebound may stifle crude’s recovery

“All eyes” are on the U.S. response to higher prices, Morgan Stanley said in a report Monday, adding that the trend in rig numbers will be closely watched in the coming months. Drillers returned nine machines to operation last week, the biggest gain since December and only the second addition this year, according to Baker Hughes Inc., which has been compiling the data since 1944.

http://fuelfix.com/blog/2016/06/06/as-oil-nears-50-a-barrel-will-renewed-drilling-undercut-price-gains/