US Oil Weekly Update

The WTI crude price along with other benchmarks tumbled significantly at the end of last week and continued the steep downward trajectory early this week as markets across the globe hit panic mode. The wider market uncertainties overpower bullish data from EIA and growing concerns of an Iranian retaliation to Israel after the assassination of the political leader of Hamas Ismail Haniyeh in Tehran.

Figure 1. Benchmark crudes in steep decline after market panic

U.S. commercial crude oil inventories with another significant draw compared to last week. The inventories excluding the SPR now at 429,3 million barrels and going on six weeks with declining inventories. We are now at the lowest levels since early February (427.4 million barrels) and 16,3 million barrels lower than a year ago. The SPR gained another 700 000 barrels compared to last week, to offset some of the draws in commercial inventories. At 375,8 million barrels the SPR has increased 28 million barrels compared to a year ago.

Figure 2. US Crude Stocks including SPR at 805.1 million barrels.

Figure 3. US Crude Stocks Excluding SPR at 429.3 million barrels.

The Baker Hughes weekly rig count shows a three-rig decline compared to last report. The count of active oil focused rigs isflat, but gas focused rigs saw a decline of three active rigs. Total active rigs in the US are 596, compared to last weeks589. This is 73 active rigs lower than a year ago. We have 98 active gas rigs compared to 128 a year ago, and 482 active oil rigs compared to 525 a year ago. The number of miscellaneous is flat compared with twelve months prior.

Figure 4. Numbers of Active Oil Rigs are flat at 482.

Figure 5. Continued decline in Active Gas Rigs. Three less compared to last report.

Figure 5. Decrease of three Active Rigs Compared to Last Report.

Figure 6. Rig Count in Major Basins

Baker Hughes has issued the rotary rig counts as a service to the petroleum industry since 1944, when Baker Hughes Tool Company began weekly counts of U.S. and Canadian drilling activity. Baker Hughes initiated the monthly international rig count in 1975. The North American rig count is released weekly at noon Central Time on the last day of the work week.

Disclaimer

This report is under no circumstances intended to be used for or considered as investment advice. This report is to be used as information and a general market guidance. The author, GE Briefings and Investornytt cannot guarantee that the information from sources is without incentives, but the author has taken considerable care to ensure that, and to the best of his knowledge, material information contained in the report is in accordance with the facts and contains no omission likely to affect its understanding. Please note that this report is the authors own research, opinions and conclusions, and the readers is recommended to draw their own conclusions based on other sources than this report, the facts and market picture can change in an instant and therefor the reader must do their own due diligence. The author, GE Briefings and Investornytt cannot be held responsible for the readers investments based on this report.

En vandrelysten finansnerd med tydelige spor av graphomania og bibliofili i blodet. Hans første møte med markedet bortsett fra noen kornete aksjekurser på 28" tekst TV, var igjennom Odin fondene i 2000 – 2001. Der diversifiserte han pengene ut på ODIN Offshore, ODIN Norden og ODIN Finland, helt tilfeldig. Etter å først dyppet stortåen forsiktig ned i vannet ble han etter hvert hektet. I 2002 gjorde han sin første handel i en enkeltaksje, Selskapet hadde ticker symbolet, STL- eller Statoil på folkemunne. Der kastet han alle kortene i panikk etter en liten korreksjon noen måneder senere, han elsket det! Nå kombinerer han sine to hobbyer, skriving og finans og smelter dem sammen til en lidenskap.