Crude continued to recover in January after OPEC’s production cuts began to influence prices. Saudi Arabia reduced output 450,000 bopd to average 10.64 MMbopd in December, and sanctions on Venezuela and Iran also helped. However, the decline was offset partially by Russia, which upped its production 80,000 bopd to 11.45 MMbopd. The U.S. climbed to 11.66 MMbopd, seemingly unfazed by the 18% price drop in November. Futures are also suffering, due to the ongoing trade war between the U.S. and China, which is expected to dampen demand growth. Gas prices plummeted 23% in January, with HH product selling for $3.13 MMBtu after averaging $4.04 the previous month. The DUC count in the U.S. was revised downward to 8,594, but it still increased 218 wells m-o-m. The U.S. rig count was down 17 units to 1,066 in January.