Raising Rig Count Slices Prices

By: Daryl Milliner / December 4, 2017

This morning oil prices pulled back across the board with January WTI down -1.05% to $57.70 a barrel, January RBOB fell -2.00% to $1.71 per gallon and HO lost -1.81% to a $1.91 per gallon. These losses are attributed to data released by Baker Hughes late last week that US drilling and oil rig count had again risen by 6 to 929 since November 22nd 2017. The rig count has risen +332 since last year’s count on December 2nd 2016. This news is an indication of continued rising U.S. oil production, and amid news of OPECs intensions to remain sternly compliant with the 1.8 million bpd production-cut agreement, the market carries apprehension that this growing U.S. production could pose a solid opposition to OPECs goals.

rig count-4.png

 

OPECs goal here is to extend production cuts past its initial end date in March to the end of 2018 and executing this goal would then, in their eyes curb the global supply glut drooping over the market.  As U.S. oil producers are not a part of the OPEC production cut deal, this rise in rig counts is a sign of increased production and may hamper OPECs goals in the short term. The Organization of the Petroleum Exporting Countries plans to revisit the cut-policy in June, but we’ll have to wait and see how this steady U.S. production will impact their decision making going forward.

 

 


Categories: Rig Count, Daily Market Update


Daryl Milliner

Written by

Daryl Milliner

Exemplary customer support and relationship building are my focus. I strive to use all my knowledge and resources to ensure customers’ fuel operations are run seamlessly and efficiently. Keeping customers informed and satisfied is my highest priority.


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


Comments

Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.

Categories

Contact Us