US Oil Rig Numbers Continue to Fall
August 7, 2023
Oil rigs continue to fall supporting the outlook for lower US crude oil production. Oil rigs according to the Baker Hughes Rig Count Report fell by 4 to a total of 525 and last year for this same reporting week oil rigs were 598.
Nonfarm Payrolls in the US were up 187,000 in July, this was below market expectations of 200,000 giving a glimpses of a slower labor market.
Reports indicate that the Joint Ministerial Monitoring Committee of OPEC+ kept the oil output policy unchanged at its meeting on Friday. They said they will closely monitor market conditions.
Russian Deputy Prime Minister, Alex Novak, said global oil demand is set to increase by 2.4 million bpd this year, and strong demand makes the market balanced.
A Ukrainian naval drone attacked a Russian oil tanker in the Black Sea over the weekend which raised concerns about future supplies as the war in Ukraine continues. The concern in these areas seems to be more about grain at this point than energy, but it does again remind us that there is an ongoing war, and we can never be sure what may happen.