US-Iran work on nuclear deal
April 21, 2025
Crude oil is down over a $1.50 per barrel this morning on the news that talks between the US and Iran over the weekend where much more positive than just about everyone expected. They began to work on the framework for a potential nuclear deal. Of course, we all know that beginning on the framework to getting a deal has a long way to go.
OPEC+ is also supposed to begin putting more barrels onto the market starting in May and that also is in the news and helping the downside today as we start a new week. OPEC+ is supposed to increase supply by 411,000 barrels starting in May.
The Trump tariffs are also seen putting some pressure on prices because they will cause a recession and slow global demand for crude oil.
These energy markets have plenty to try and decipher and we will likely see prices congest in this area and buy time trying to get a clearer picture on any of the many things impacting the market currently.
According to traders and data from Vortex, Russia’s Artic oil exports to China are set to increase sharply this month supported by an increase in ship-to-ship transfers at sea to ensure tankers pulling into port are not on US sanctions lists.
Baker Hughes reported that US energy firms this past week added oil and natural gas rigs for the first time in four weeks. It reported that the oil and gas rig count increased by two to a total of 585. Baker Hughes said the number of oil rigs increased by one to 481 this week, and gas rigs increased by one to 98. Completion crews increase by 5 according to Primary Vision’s Frac Spread count. Total completion crews are at 200, which is 60 fewer than this time last year.