Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures contracts were lower during the Asian trade hours Monday morning. Economic data showed that a ring rig count in the United States means more output. This is a key factor holding back the price of oil in the face of other bullish indicators.
As of 12:30 am GMT, the international benchmark Brent crude oil futures were trading at $73.87 per barre. This was down 9 cents from their close on Friday.
U.S. West Texas Intermediate (WTI) crude futures were also trading lower. They were down 23 cents at $68.17 a barrel.
Economic data, released on Friday, showed that rig count in the United States was high for the week that ended April 20. This brings the U.S. rig count, drilling for the black gold, up to 820. This is the most active rigs since March, 2015. This was data released by Baker Hughes energy services firm. Baker Hughes is a subsidiary of General Electric.
Rising U.S. Rig Counts point to Higher Shale Production undermining OPEC
The ever rising rig count number in the United States point to even more production for shale. This number, production, has moved higher since 2016. It is now at a record 10.54 million barrels per day. Russia is now the only country in the world pumping more oil than the U.S. at nearly 11 million barrels per day.
Only Russia currently produces more, at almost 11 million bpd.
Despite the fall in oil contracts, this morning, price action is being supported by global demand which reminds high. Demand is very high in Asia and Brent is up twenty percent since its low price point set back in February of 2018.
The Organization of the Petroleum Exporting Countries (OPEC) continues to support price levels as well. They have production reduction scheme in place since 2017. They are reducing production to support global prices. There is also the possibility of new U.S. sanctions against Iran.
