Rumblings of a Cease Fire in Gaza
April 8, 2024
The Baker Hughes Rig Count said oil rigs were up 2 to a total of 508 and last year there were 590 oil rigs in operation.
Energy prices were pushed higher on Friday driven by a better than expected US jobs report. The US Bureau of Economic Analysis reported that 303,000 new non-farm jobs were created in March 2024. This was well above the 200,000 new jobs expected and above the expected range of (150k to 230k).
Energy prices are down to start this news week as there are again some rumblings about a cease fire. Israel has been reported to have removed some troops from Gaza and this has helped to resume some of the ceasefire talks. As is always the case, these things can change quickly so the market will be very cautious.
ANZ Research said the prospect of a tighter market should see a drawdown in oil inventories during the second quarter.
The US oil demand remains good, and the economy continues to post positive results despite higher interest rates, but crude will likely need more news out of the Middle East and or Ukraine to extend crude oil run higher.