Port workers set to strike at midnight
September 30, 2024
From Reuters: US East and Gulf Coast port workers are set to go on strike at midnight with no talks currently scheduled to head off a stoppage threatening to halt container traffic from Maine to Texas and cost the economy as much as $5 billion a day.
Baker Hughes reported on Friday that 4 crude oil rigs came offline in the US down to a total of 484 rigs. 121 US oil rigs came offline in 2023 and 16 have come offline in 2024 thus far.
The energy markets are trying to carve out a bottom but are struggling to do so and as time goes on and the bulls are unable to rally prices the risk grows for another test lower.
Roughly 24% of US Gulf of Mexico oil and gas production remains shut down following Hurricane Helene.
The conflict in the Middle East had some more action over the weekend and the markets again fear this could intensify and draw Iran into the conflict. This news does offer support to prices even thought a big chunk of the war premium is already baked into the markets.
As Cushing, Ok crude oil stocks decline, the US Gulf Coast grows in prominence Reuters is reporting that, ”Rising US crude oil exports are boosting the prominence of Gulf Coast price benchmarks and buoying trading volumes on Houston contracts, eroding the significance of Cushing, Oklahoma, storage hub. Since US WTI Midland crude oil transactions joined the dated Brent price assessment a year ago, US oil exports have overshadowed the role of Cushing as a storage and pricing hub analysis said.