Baker Hughes reports U.S. rig count down 12 to 759 rigs
Baker Hughes (BKR) reports that the U.S. rig count is down 12 from last week to 759 with oil rigs down 10 to 599, gas rigs down 2 to 158 and miscellaneous rigs unchanged at 2.
The U.S. Rig Count is up 146 rigs from last year’s count of 613 with oil rigs up 102, gas rigs up 42 and miscellaneous up 2.
The U.S. Offshore Rig Count is down 1 to 12, down 4 year-over-year. The Canada Rig Count is up 2 from last week to 249, with oil rigs up 2 to 159, gas rigs unchanged at 90.
The Canada Rig Count is up 31 rigs from last year’s count of 218 with oil rigs up 23, gas rigs up 8.
The Baker Hughes rig counts are counts of the number of drilling rigs actively exploring for or developing oil or natural gas in the U.S., Canada and international markets.
The Company has issued the rig counts as a service to the petroleum industry since 1944, when Hughes Tool Company began weekly counts of the U.S. and Canadian drilling activity. The monthly international rig count was initiated in 1975.
West Texas Intermediate (WTI) is down $2.05 to $73.81 per barrel (down from a high of $123.70). Brent crude is down $2.06 to $80.19 per barre (down from a high of $127.98). Gasoline last traded at $2.349 per gallon (down from a high of $4.31 per gallon).
This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.
ECB raises Main Refinancing Rate by 75bps to 2.00%
The ECB stated:
“The Governing Council today decided to raise the three key ECB interest rates by 75 basis points. With this third major policy rate increase in a row, the Governing Council has made substantial progress in withdrawing monetary policy accommodation.
The Governing Council took today’s decision, and expects to raise interest rates further, to ensure the timely return of inflation to its 2% medium-term inflation target.
Christine Lagarde: ECB President
The Governing Council will base the future policy rate path on the evolving outlook for inflation and the economy, following its meeting-by-meeting approach. Inflation remains far too high and will stay above the target for an extended period. In September, euro area inflation reached 9.9%.
In recent months, soaring energy and food prices, supply bottlenecks and the post-pandemic recovery in demand have led to a broadening of price pressures and an increase in inflation.
The Governing Council’s monetary policy is aimed at reducing support for demand and guarding against the risk of a persistent upward shift in inflation expectations. The Governing Council also decided to change the terms and conditions of the third series of targeted longer-term refinancing operations (TLTRO III).
During the acute phase of the pandemic, this instrument played a key role in countering downside risks to price stability.
Today, in view of the unexpected and extraordinary rise in inflation, it needs to be recalibrated to ensure that it is consistent with the broader monetary policy normalisation process and to reinforce the transmission of policy rate increases to bank lending conditions.
Accordingly, the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will be increased to 2.00%, 2.25% and 1.50% respectively, with effect from 2 November 2022.
Asset purchase programme (APP)
The Governing Council intends to continue reinvesting, in full, the principal payments from maturing securities purchased under the APP for an extended period of time past the date when it started raising the key ECB interest rates and, in any case, for as long as necessary to maintain ample liquidity conditions and an appropriate monetary policy stance.
This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.
Denbury jumps after Bloomberg says Exxon considering takeover
Exxon Mobil (XOM) is considering a takeover of Denbury (DEN), Kiel Porter of Bloomberg reports, citing people familiar with the matter. Exxon has expressed preliminary interest in Denbury but no final decision has been made, sources told Bloomberg. In August, Bloomberg reported that Denbury is working with an adviser to explore a sale.
Denbury Inc., an independent energy company, focuses on producing oil from mature oil fields in the Gulf Coast and Rocky Mountain regions. The company holds interests in various oil and natural gas properties located in Mississippi, Texas, and Louisiana in the Gulf Coast region; and in Montana, North Dakota, and Wyoming in the Rocky Mountain region. As of February 24, 2022, it had 192 million barrels of oil equivalent of estimated proved oil and natural gas reserves.
Denbury is working with investment bankers at JPMorgan on negotiations to be acquired by a strategic buyer, according to Street Insider, citing a source who reportedly added that the talks may not lead to a definitive transaction. Previously, on August 17, Bloomberg’s Kiel Porter, Gillian Tan, and Kevin Crowley reported that Denbury was exploring options, including a possible sale.
Key Bank
After Bloomberg reported that Denbury (DEN) hired bankers to explore a sale and mentioned ExxonMobil (XOM) as a potential buyer, shares are outperforming sharply today, noted KeyBanc analyst Tim Rezvan. M&A for Denbury has been an “active debate topic with clients” since his launch of coverage, when shares were in the $75-$85 per share range, and with the shares “flirting with the $100/share level today,” he believes “there is clearly M&A upside in the share price,” said Rezvan. The analyst, who noted that the company did not provide a comment when he reached out for information, has an Overweight rating on Denbury shares.
This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.
Baker Hughes reports U.S. rig count up 4 to 763 rigs
Baker Hughes (BKR) reports that the U.S. rig count is up 4 from last week to 763.
U.S. Rig Count is up 251 rigs from last year’s count of 511 with oil rigs up 239, gas rigs up 58 and miscellaneous rigs up 4.
The U.S. Offshore Rig Count is unchanged at 16, up one year-over-year.
The Canada Rig Count is up 6 from last week to 211, with oil rigs up 3 to 140, gas rigs down 4 to 63.
The Canada Rig Count is up 47 rigs from last year’s count of 156, with oil rigs up 45, gas rigs up 3 and miscellaneous rigs down 1.
The International Rig Count is up 27 rigs to 860 and up 81 from last year’s count.
The Baker Hughes rig counts are counts of the number of drilling rigs actively exploring for or developing oil or natural gas in the U.S., Canada and international markets.
The Company has issued the rig counts as a service to the petroleum industry since 1944, when Hughes Tool Company began weekly counts of the U.S. and Canadian drilling activity. The monthly international rig count was initiated in 1975.
Rig Counts Rise – See Stockwinners.com Market Radar to read more
West Texas Intermediate (WTI) is up 28 cents to $85.34 per barrel (down from a high of $123.70). Brent crude is up $0.72 to $91.54 per barre (down from a high of $127.98). Gasoline last traded at $2.418 per gallon (down from a high of $4.31 per gallon).
This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.
Fed’s Beige Book reiterated the economy expanded at a moderate pace
Fed’s Beige Book reiterated the economy expanded at a moderate pace.
But there was a big “however,” something the Fed typically does not express:
“several Districts reported grow signs of a slowdown in demand, and contacts in five Districts noted concerns over an increased risk of a recession.”
Most Districts reported moderation in consumer spending as higher food and gas prices diminished households’ discretionary income.
Federal Reserve Regions
Auto sales were sluggish with low inventories still impacting.
Leisure travel was “healthy.” Manufacturing was mixed. Non-financial services firms saw stable to slightly higher demand. Housing demand weakened.
As in the prior report, the outlook for future economic growth was mostly negative.
Employment generally continued to rise at a moderate pace and conditions were tight overall.
Jerome Powell, FOMC Chair
But there was some sign of modest improvement in labor availability.
Most Districts reported wage growth.
“Substantial” price increases were reported across all Districts, at all stages of consumption, with food, commodities, and energy (particularly fuel) cost remaining “significant.”
There was some moderation in construction materials.
Pricing power was steady, but firms in some sectors like travel and hospitality, were able to pass through sizeable increases to consumers. That is seen persisting through the year.
This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.
OPEC, Russia-led group agree to increase oil production
WTI prices extended earlier gains following the bullish EIA inventory report that overshadowed the boost in production announced by OPEC+.
The Energy Information Administration (EIA) is the statistical agency of the Department of Energy. It provides policy-independent data, forecasts, and analyses to promote sound policy making, efficient markets, and public understanding regarding energy, and its interaction with the economy and the environment.
Crude prices have climbed a whopping 6-handles on the day, surging to $117.27 from an overnight low of $111.20. This is the highest since March.
The market has been whipped recently, with prices climbing on news EU would sanction some Russian oil imports, only to tumble on reports OPEC+ was considering excluding Russia from production quotas which suggested increased output from Saudi and UAE to make up for the loss.
Rig Counts Rise – See Stockwinners.com Market Radar to read more
Then overnight there was talk that the cartel would boost production between 500 M and 700 M barrels, which saw prices dip to the lows, but only briefly.
Prices rallied and remained elevated into the $114 area, even after OPCE+ confirmed the production increase by some 50% or 648k bpd in July and August, as there were doubt the increased output can be effected.
There is also skepticism supply will be able to meet demand down the road. The market also was likely pricing in an inventory shortfall, which the EIA confirmed with crude stocks falling 5.1 M barrels, while distillates and gas stocks declining too.
WTI is up $1.43 to $116.67 per barrel. Brent is up $1.22 to $117.52 per barrel. Gasoline is up 0.126 to $4.199 per gallon. Note that dollar is weaker today which is also helping oil prices. Euro last traded at $1.08 after hitting a low of $1.06 on the day.
This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.
Baker Hughes reports U.S. rig count up 7 to 576 rigs
Baker Hughes (BKR) reports that the U.S. rig count is up 7 from last week to 576 with oil rigs up 4 to 471, gas up 3 to 105, and miscellaneous rigs unchanged at 0.
The U.S. Rig Count is up 238 rigs from last year’s count of 338, with oil rigs up 213 gas rigs up 26 and miscellaneous rigs down 1.
The U.S. Offshore Rig Count is up 1 to 14, up 1 year-over-year.
The Canada Rig Count is down 3 from last week to 177, with oil rigs down 3 to 110, gas rigs unchanged at 67.
The Canada Rig Count is up 66 rigs from last year’s count of 111, with oil rigs up 58, gas rigs up 8.
The U.S. offshore rig count rose by one.
The Baker Hughes rig counts are counts of the number of drilling rigs actively exploring for or developing oil or natural gas in the U.S., Canada and international markets.
The Company has issued the rig counts as a service to the petroleum industry since 1944, when Hughes Tool Company began weekly counts of the U.S. and Canadian drilling activity. The monthly international rig count was initiated in 1975.
West Texas Intermediate (WTI) is up $1.01 to $71.95 per barrel. Brent crude is up $0.95 to $75.35 per barrel. Gasoline last traded at $2.142 per gallon up 1.4 cents on the day.
This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.
Baker Hughes reports U.S. rig count up 6 to 503 rigs
Baker Hughes (BKR) reports that the U.S. rig count is up 6 from last week to 503 with oil rigs up 7 to 401, gas rigs down 1 to 101, and miscellaneous rigs unchanged at 1.
Oil Rigs, See Stockwinners.com Market Radar to read the latest on oil and rig count
The U.S. Rig Count is up 249 rigs from last year’s count of 254, with oil rigs up 221 gas rigs up 30 and miscellaneous rigs down 2 to 1.
The U.S. Offshore Rig Count is up 4 to 6, down 9 year-over-year.
The Canada Rig Count is down 9 from last week to 143, with oil rigs down 5 to 87, gas rigs down 4 to 56.
The Canada Rig Count is up 91 rigs from last year’s count of 52, with oil rigs up 68, gas rigs up 23.
The Baker Hughes rig counts are counts of the number of drilling rigs actively exploring for or developing oil or natural gas in the U.S., Canada and international markets.
The Company has issued the rig counts as a service to the petroleum industry since 1944, when Hughes Tool Company began weekly counts of the U.S. and Canadian drilling activity. The monthly international rig count was initiated in 1975.
West Texas Intermediate (WTI) is up $1.61 to $69.75 per barrel. Brent crude is up $1.51 to $72.96 per barrel. Gasoline last traded at $2.15 per gallon up 5.3 cents on the day.
This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.
Baker Hughes reports U.S. rig count up 3 to 491 rigs
Baker Hughes (BKR) reports that the U.S. rig count is up 3 from last week to 491 with oil rigs up 2 to 387, gas rigs unchanged at 103, and miscellaneous rigs up 1 to 1.
Rig Counts Rise – See Stockwinners.com Market Radar to read more
The U.S. Rig Count is up 244 rigs from last year’s count of 247, with oil rigs up 211 gas rigs up 34 and miscellaneous rigs down 1.
The U.S. Offshore Rig Count is unchanged at 14, up 2 year-over-year.
The Canada Rig Count is up 3 from last week to 156, with oil rigs up 2 to 95, gas rigs up 1 to 60 and miscellaneous unchanged at 1.
The Canada Rig Count is up 109 rigs from last year’s count of 47, with oil rigs up 82, gas rigs up 26 and miscellaneous unchanged 1.
The Baker Hughes rig counts are counts of the number of drilling rigs actively exploring for or developing oil or natural gas in the U.S., Canada and international markets.
The Company has issued the rig counts as a service to the petroleum industry since 1944, when Hughes Tool Company began weekly counts of the U.S. and Canadian drilling activity. The monthly international rig count was initiated in 1975.
West Texas Intermediate (WTI) is down 54 cents to $68.55 per barrel. Brent crude is down $0.51 to $70.96 per barrel. Gasoline last traded at $2.28 per gallon down 2 cents on the day and down 10 cents for the week.
This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.
Baker Hughes reports U.S. rig count up 8 to 392 rigs
Baker Hughes (BKR) reports that the U.S. rig count is up 8 from last week to 392 with oil rigs up 4 to 299, gas rigs up 4 to 92, and miscellaneous rigs unchanged at 1.
Rig Counts Rise – See Stockwinners.com Market Radar to read more
The U.S. Rig Count is down 398 rigs from last year’s count of 790, with oil rigs down 377, gas rigs down 19 and miscellaneous rigs down 2.
Offshore Rig Count is unchanged
The U.S. Offshore Rig Count is unchanged at 16, down 7 year-over-year. The Canada Rig Count is down 3 from last week to 171, with oil rigs down 3 to 95, gas rigs unchanged at 76.
The Canada Rig Count is down 86 rigs from last year’s count of 257, with oil rigs down 72, gas rigs down 14.
The Baker Hughes rig counts are counts of the number of drilling rigs actively exploring for or developing oil or natural gas in the U.S., Canada and international markets. The Company has issued the rig counts as a service to the petroleum industry since 1944, when Hughes Tool Company began weekly counts of the U.S. and Canadian drilling activity. The monthly international rig count was initiated in 1975.
West Texas Intermediate (WTI) is up 73 cents to $56.95 per barrel. Brent crude is up 50 cents to $59.50 per barrel. Gasoline last traded at $1.65 per gallon.
This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.
