Oil Pares Monthly Gain as U.S. Rigs Counter Iran-Deal Risk

Futures in New York are up 3.7 percent this month, even after a 1 percent drop on Monday, following data that showed an increase in U.S. drilling activity. A potential withdrawal in May by U.S. President Donald Trump from a 2015 nuclear deal between world powers and Iran would reimpose sanctions on the Middle Eastern producer and curb its exports. Meanwhile, OPEC is trimming output even after concluding it has cleared 97 percent of the surplus that has weighed on prices.

“Obviously the rig count that came on Friday was quite bearish,” says Torbjorn Kjus, chief oil analyst at DNB Bank ASA. “There’s a lot of profit in the books here for the non-commercials. You shouldn’t be surprised if there’s a $5 flush out and some profit taking.”

In the U.S., working oil rigs rose by five last week to 825, the highest level since March 2015, according to data from Baker Hughes. The rig fleet has expanded throughout the entire month of April, adding a total 28 units. Investors are assessing if surging U.S. production, which has topped 10 million barrels a day every week since early February, will undermine efforts by the Organization of Petroleum Exporting Countries to balance the market via output cuts.
more at:  https://www.bloomberg.com/news/articles/2018-04-30/oil-holds-losses-near-68-as-u-s-rigs-expand-to-three-year-high

Related Posts

Key Currency Exchange Rates for Friday, 12/10/21

American Dollar to Canadian Dollar = 0.787469; American Dollar to Chinese Yuan = 0.157006; American Dollar to Euro = 1.128788; American Dollar to Japanese Yen = 0.008807; American Dollar to Mexican Peso = 0.047790.

Chance of railroad strike high after rejection (chicagotribune.com)

The major freight railroads appear unwilling to give track maintenance workers much more than they received in the initial contract they rejected last week, increasing the chances of a strike. The railroads took the unusual step of issuing a statement late Wednesday rejecting the Brotherhood of Maintenance of Way Employes Division union’s latest request to add paid sick time on top of the 24% raises and $5,000 in bonuses they received in the first five-year deal. Union Pacific CEO Lance Fritz said Thursday that he thinks the main reason the BMWED rejected its initial contract last week was that the details of improved expense reimbursement in the deal were still being negotiated at Union Pacific while workers were voting. So it wasn’t clear exactly what those workers would receive for their travel expenses when they go on the road to repair tracks. Six of the 12 railroad unions that represent 115,000 workers nationwide have approved their tentative agreements with the railroads so far, but all of them have to ratify their contracts to avoid a strike.

AAA Daily Fuel Gauge Report for Friday, 7/9/21

National Average Price for Regular Unleaded Current: $3.143; Month Ago: $3.067; Year Ago: $2.189. National Average Price for Diesel Current: $3.260; Month Ago: $3.202; Year Ago: $2.439.
Back To Top
×Close search
Search