US Airstrikes Hit Iranian-backed Militias
June 28, 2021
The energy market had a volatile day on Friday as the daily range for RBOB and ULSD was roughly ten cents per gallon.
The Baker Hughes Rig Count was down 1 crude oil rigs to a total of 372 rigs and last year there were 188 rigs at this time. Before the pandemic in March of 2020 the US had 683 crude oil rigs online. The current low number of rigs is in despite of crude oil prices rallying to roughly the highest level in three years. US shale oil firms seem much more disciplined to hold the line to try to produce returns for investors with a limited but steady production target. With the outlook for shale production to be stable OPEC+ is expected to add 500,000 to 1.0 million bpd to the market starting in August at their upcoming meeting July 1. This oil will be needed as most analysts see current demand outpacing supply by 1.5 to 2 million bpd. The last time crude oil prices were near these price levels the number of rigs in operation was double the current level.
The US announced overnight that it had conducted airstrikes on Iranian-backed militia groups near the Iraq-Syria border, following attacks against American personnel and facilities in Iraq. The energy market reaction has been muted.