Russian aggression could lead to more sanctions
May 27, 2025
The Baker Hughes Rig Count had oil rigs down 8 rigs to a total of 465 and last year oil rigs were at 497.
Energy markets on Friday were very uneventful with prices just trading in a range.
These energy markets continue to be confronted with multiple issues that may impact future price trends. The negotiation with Iran on nuclear issues is going ok for now, which could lead to the easing of sanctions and more oil production. On the other hand, the tensions between President Trump and President Putin after recent Russian attacks could limit the barrels coming out of Russia for the global market. As has been the case, there are plenty of concerns in these markets and no clear path forward, so the uncertainty leads to congestion and sideways trading.
OPEC+ meets this coming weekend, and most expect that they will add additional barrels to their July production. The UAE Energy Minister stressed the need to balance the market, warning that low investment in supply could lead to unexpected price jumps. OPEC+ moved this meeting date to May 31.
From John Kemp of John Kemp Energy: US traffic volumes have been increasing at a rate of around 1% per year over the last twelve months. Highway volumes hit a seasonally adjusted record of 276 billion vehicle-miles travelled in March 2025, up from 272 billion in March 2024, and exceeded the pre-pandemic rates owing to significant improvements in vehicle fuel economy as well as the increasing penetration of electric vehicles.