Ukraine Continues Counterattacks on Russian Energy Infrastructure
March 18, 2024
The Baker Hughes Rig Count had oil rigs up to 6 to a total of 510 and last year there were 589 oil rigs in operation. Production was down in last Wednesday EIA weekly report, but it is still very high at near 13 million bpd.
The March Empire State Manufacturing index came in at -20.9, and the expectation was for -6.
The University of Michigan’s March consumer sentiment came in at 76.5 down from 76.9. the expectation was 77.4 but that may be a bit greedy. That 76.9 was the best we have had in 32 months.
Ukraine continued their attacks on Russian energy infrastructure hitting another refinery over the weekend. That news has prices up this morning with ULSD up roughly 0.03 cents RBOB up 0.02, and crude oil up .20 cents as of this writing. These activities have had some limited impact on supply but what these attacks have really done is kept the fear in place that further attacks may at some point seriously impact energy infrastructure. At that point when and if supplies are impacted substantially prices will see more upside.
The energy market continues to look for direction as it wrestles with several issues; concerns about the economy and worries the Fed will not be able to cut rates as inflation remains high about the Fed’s 2% target, and supportive demand growth forecast and geopolitical concerns. As always there are many factors impacting the market and that will keep volatility alive and well.