Peace Talks Fade in Middle East
May 6, 2024
The Baker Hughes Rig Count had oil rigs down 7 to a total of 499 oil rigs. Last year there were 588 oil rigs online. Despite the decline in rigs production has been up. Oil production in the US is up 800,000 bpd from 2023 to 2024.
The current market sentiment seems to be strong that OPEC+ will continue their 2.1 million bpd production output cuts through Q3 for sure and most likely Q4.
The Israel and Hamas peace talks have faded and that is again offering support to crude oil prices. Hamas is demanding an end to the war and not a ceasefire and exchange of prisoners.
Saudi Arabia raise it price for June crude oil to most of the region into which is sells. This is also news that is offering support to crude prices.
The weak demand outlook is the main fundamental driver that is putting some sell pressure on prices.
The Bureau of Labor Statistics (BLS) reported early Friday that the US added 175,000 new non-farm jobs in April 2024. This was well below the 243,000 new jobs expected and below the range (+190,000 to 303,000). The BLS reported a surprise tick up in the US unemployment index from 3.8% to 3.9%.
The Interfax news agency cited Russia’s Defense Ministry as saying Russian forces have struck an oil deport in Balvone that supplies Ukrainian troops.