The US Deploys Military Forces to the Middle East
September 23rd, 2019
Chinese representatives were in town las week to have trade talks word got out Friday that they cut their visit short and went home and everyone took that as bad news. The Chinese delegation was supposed to visit some farms in Iowa, but at some point, the US ask them to forego that portion of the trip. Then all side gave the indications that negotiating were good and progress was made.
The Baker Hughes Rig Count Report put out on Friday reported that crude oil rigs were down by 14 putting the total number of rigs down to 719. This total is the lowest level of rigs since 5-12-2017.
The US will deploy military forces to the Middle East due to firm that Iran attacked oil facilities in Saudi Arabia over the weekend. The forces will be a defensive in nature and primarily focused on air and missile defense. This may be viewed as bearish with US forces protection oil facilities in the Middle East. Others may view this a bullish with increased risks of war with Iran.
The market continues to trade in tight range as the real impact to oil structures in Saudi Arabia continues to be debated and analyzed at to the real impact to production and how long it will be until they can get that all back up and running. The topic will be analyzed and watch for any progress or potential setbacks.