Biden and McCarthy Reach Debt Ceiling Deal
May 30, 2023
The Baker Hughes Rig Count had crude oil rigs down 5 to a total of 570 and last year at this time there were 574 crude oil rigs. The rig count has been easing back as shale oil producers continue to be conservative and diligent to provide shareholders with value. Crude oil rigs have fallen by 53 rigs so far this year.
The energy markets on Friday were higher but nothing big as the markets continued to tread water waiting for the next event or news story to move price out of their ranges.
RBOB continue to trade in a range and that is likely to continue until we see recession fears finally break support or demand and or hurricane fears take the market up through resistance.
From John Kemp of Reuters. Hedge funds and other money managers increased short positions in NYMEX WTI by 10 million barrels to 73 million barrels over the seven days ending on May 23. Bearish short positions increased by a total of 50 million barrels over the five weeks since April 18.
Three sources state that Russia is leaning towards leaving oil production volumes unchanged ahead of an OPEC+ policy meeting on June 4 because Moscow is content with current prices and output. On Wednesday of last week, Russian President Vladimir Putin, said that energy prices were approaching “economically justified” levels, while Russian Deputy Prime Minister Alexander Novak, said on Thursday of last week that he did not expect new steps from OPEC+. He said the Russia and its OPEC+ partners would make a decision on what is best for the oil market when they meet in Vienna.
On Saturday President Biden and House Speaker Kevin McCarthy reached a tentative deal the debt ceiling. Now the deal must go before congress for a vote of approval hopefully before the estimated day the government will run out of money on June 5.