By Srinivas Chowdary Sunkara // petrobazaar // 07-05-2018.
Oil trades with caution
Crude oil prices are trading at ever high prices after Nov, 2014. Both the futures are closed with a positive note on Friday and Brent futures recorded a jump of 2.59% during the last week. During the last week, Market jitters kicked in over the prospectus of Geo-political premium on possible U.S sanctions on Iran and Investors changed focus on the news of Iran sanctions and increasing U.S production at the week end for cues.
Baker Hughes reported that U.S drillers increased oil rigs by 9 Nos. While Geo-political premium cashed in, Increase in rig numbers, U.S production jump are the factors capping the margins. Deepening economic crisis in Venezuela is threatening oil exports.
Crude oil price update
On Friday, U.S crude futures for June delivery was up by $1.29 per barrel at $69.72 per barrel on Nymex while Brent futures to be delivered in July jumped by $1.29 to close at $74.87 a barrel on London based ICE futures Europe exchange. Today both the futures opened up during Asian hours and trading at ever high after Nov, 2014 at the time of reporting.
Rig count - summary
The over all rig count jumped by 11 this week, including nine oil rigs, Six of those came in New Mexico and Texas gained two. Other states with little jump including Alaska, Louisiana, Oklahoma and North Dakota. Oil rigs are increased by 131 from last year to 834 Nos. operating in U.S, half of them - 458 situated in the Permian.
Dollar Index is performing strong and at near 4 month high after U.S jobs data. Metals are doing good apart from other equity markets. Speculators are entered into crude market on expectation of geopolitical premium. This week, crude markets are expected to be highly volatile and investor should be wise enough to take call.
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