With markets trading near one-month highs, Friday’s Baker Hughes Rig Count gave us all a surprise. The BHRC showed a huge drop of 21 total rigs bringing that total to 830 with Crude Oil rigs dropping 17 to 696 and Nat Gas dropped 4 to 133. Misc. rigs were unchanged at 1 and offshore dropped 1 to just 21. The E & P’s are pulling back cap-x dollars, even at a time when we are producing record output in crude oil (12.6 mmbls per day)

Market Drivers for Today:

Friday’s Baker Hughes Rig Count

US/China Trade talks

How long till cap-x comes back into the oil patch

Hurricane Season: The Tropics are winding down…

Matador Economics

Timbo’s Macro’s: Today we get “Advance trade in goods” numbers and don’t forget, this Wednesday we get the GDP. At 07:45 CDT WTI was trading down 13 with ULSD was down 58 and RBOB was down 52. Gold was down $1.10 and the US $$ Index was down at 97.767. Bitcoin was back around $9295, but off $324.

Commodity Summary: Market Close for 10-25-2019

Month Product Closing Price Change
Dec WTI $56.66 $0.45
Dec Brent $62.02 $0.35
Nov Nat Gas $2.300 ($0.016)
Nov ULSD $1.9796 ($0.0067)
Nov RBOB $1.6730 $0.0098

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Matador Economics

Matador Economics