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…
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