Morning Market Overview
Oil prices ended Friday’s trading session slightly positive after another wild and volatile trading session in the global equity markets. On the week the oil complex declined for the third trading week in a row. Iranian sanctions are now about a week away with many buyers already complying sending Iranian exports lower. Even Iraq announced on Friday they would stop trucking Iraqi crude from northern Iraq into Iran.
On the negative side global oil balances are not suggesting any imminent issue with supply as Russia’s energy Minister said (Reuters) he sees no need to cut or freeze output anytime soon. OPEC production levels will be a hot topic at the Dec meeting with oil prices well off of their highs and global inventories well off of their lows.
Friday afternoon the latest Baker Hughes data hit the media airwaves reporting the number of rigs deployed to the US oil sector increased by 2 rigs on the week after increasing during the previous week. Total rigs deployed to the oil sector are higher by 138 or 18.7 percent year over year.
Total US crude oil production is about 18.7 percent above where it was for the same week a year ago. This week’s production came in at 10.9 million bpd.