Market Commentary
U.S. Rig Count Hits 2009 Low
May 11, 2020
The Baker Hughes Rig Count was down 33 oil rigs with the total oil rigs down to 292 rigs. Last year at this time the US had 805 crude oil rigs online. Crude oil rigs have fallen by a total of 391 rigs over the past 8 weeks. The US […]
Fed Officials Do Not Expect Quick Rebound in Economy
May 8, 2020
Crude prices were higher in early trading yesterday as news of Saudi Arabia raising their selling price for oil and an increase in Chinese export for April were supportive news. Price did ease off the highs as the market got to the end of the days as more global demand […]
Gasoline Demand is Growing
May 7, 2020
Gasoline demand was up, and distillate demand was down in the weekly DOE inventory update. Distillate stocks increased by 9.52 million barrels and that put selling pressure on the market. Gasoline stocks were down 3.16 million barrels and that fact was overall supportive to gasoline which sold off less than […]
Oil Production Cuts Will Have Long Term Impact
May 6, 2020
The API report out yesterday afternoon called crude oil stocks up 8.4 million barrels compared with estimate for today’s DOE report for a build of 7.8 million barrels from the Reuters survey. API said that crude oil stocks at Cushing, Ok were up 2.7 million barrels. Gasoline stocks were down […]
Treasury Secretary Expects China to Follow Through on Trade Agreements
May 5, 2020
The US and China have been getting into a dispute about the outbreak of the coronavirus. Secretary of State Michael Pompeo has said that the virus likely came from a Chinese lab in Wuhan. He has stated that the evidence continues to point in that direction. The World Health Organization […]
U.S. Manufacturing Employment Fell Sharply Last Month
May 4, 2020
The Baker Hughes Rig Count on Friday showed the oil rigs fell by 53 to a total of 325 rigs. Oil rigs are down 358 (52%) in the last seven weeks. Last year at this time there were 807 oil rigs a difference of 482 rigs. The impact of this […]
Norway to Cut Crude Oil Production for First Time in 18 Years
May 1, 2020
According to a Reuters survey, OPEC’s output in April increased to the highest level since March of 2019. Output by the 14-member group in April averaged 30.32 million barrels per day. The largest increase in supply came from Saudi Arabia, which produces a record 11.3 million barrels per day. The […]